© Reuters. A person walks past the Credit Suisse logo in front of its office building in Hong Kong, China, March 20, 2023. REUTERS/Tyrone Siu
By Engen Tham and Julie Zhu
SHANGHAI/HONG KONG (Reuters) – Credit Suisse told staff its equity assets are operationally separate from UBS for now, but once they merge, clients could consider moving some assets to another bank if concentration is a concern. , according to an internal memo.
The memo dated Sunday, seen by Reuters, gave Credit Suisse staff talking points for talks with clients after a landmark takeover of the troubled bank by Swiss-backed UBS Group.
In a package orchestrated by Swiss regulators on Sunday, UBS will pay 3 billion Swiss francs ($3.23 billion) for the 167-year-old Credit Suisse and take up to $5.4 billion in losses.
UBS will become the undisputed global leader in managing money for the rich through the acquisition of its main rival, raising some concerns about concentration risks for clients.
Credit Suisse also told staff to inform clients that plans for its investment banking business will be communicated in due course as details of its acquisition by UBS are still being worked out, according to an internal memo.
“We do not expect there to be any interruption in customer services. We are fully focused on ensuring a smooth transition and a seamless experience for our valued clients and customers,” a Credit Suisse spokesperson said.
Credit Suisse will also go ahead with its annual Asia Investment Conference in Hong Kong, starting Tuesday, the spokesman said, in response to a Reuters request for comment on the internal memo.
