Credit Suisse Falls, Merges with Rival UBS

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A chapter in Swiss banking history closed today as UBS formally completed its merger with long-time rival Credit Suisse. This follows Credit Suisse’s acquisition by UBS in March 2023 for 3 billion Swiss francs.

Founded in 1856 by Alfred Escher, Credit Suisse, originally known as Schweizerische Kreditanstalt (SKA), played a pivotal role in Switzerland’s industrialization and railway development. Over the years, the bank expanded internationally, establishing a presence in key financial centers like New York and London. Through strategic acquisitions like First Boston and White, Weld and Co AG, Credit Suisse became a major player in investment banking. The bank also weathered the storm of the 2008 financial crisis without a government bailout.

However, the past decade proved tumultuous for Credit Suisse. Scandals in 2020, including the Archegos Capital and Greensill Capital debacles, resulted in significant financial losses and leadership changes. The bank faced liquidity issues in 2022 and required a bailout from the Swiss central bank.

The merger creates a dominant force in Swiss banking and wealth management. UBS will assume Credit Suisse’s wealth management business, while the investment bank will operate as a separate entity under the name CS First Boston. Ulrich Koerner, Credit Suisse’s last CEO, will depart the bank later this year.

The combined entity boasts a vast client base and significant financial resources. Only time will tell how this merger will reshape the Swiss financial landscape and how UBS will navigate integrating Credit Suisse’s operations. However, one thing is certain: the iconic name of Credit Suisse will no longer grace the financial stage.