Even with government assistance, there is a ”huge amount of risk in integrating these businesses,” Kelleher said in prepared remarks for the bank’s annual general meeting on 5 April 2023.
He also stated that the lender is confident in his ability to successfully handle the deal’s obstacles, according to BNN Bloomberg.
After years of scandals, losses, and errors in risk control, UBS agreed to purchase its long-time rival for CHF3bn in a historic transaction last month.
The government-brokered emergency agreement attempted to put an end to a confidence crisis at Credit Suisse that had begun to extend throughout global financial markets.
For every 22.48 Credit Suisse shares owned, shareholders will receive one UBS share.
UBS vice chairman Lukas Gaehwiler stated that “great uncertainty” will exist until the transaction is completed. The best-case scenario is that it will happen in a matter of weeks, but it will most likely take several months. He stated that the Credit Suisse brand will remain in Switzerland for the foreseeable future.
The bank will investigate all alternatives for Credit Suisse’s local business, while he stated that “people need to keep their expectations realistic” regarding a hive off of that operation. It is still too early to speak on employment cutbacks.
In addition to this, at the Annual General Meeting of Shareholders (AGM) in Zurich, Credit Suisse Group shareholders voted on the Board of Directors’ proposals.
In an effort to remain until the completion of the proposed merger with UBS Group Axel P. Lehmann was re-elected to a second term as chairman of the board (UBS).
Five board members chose not to run for re-election. Every other member of the board was re-elected to serve another term up until the anticipated merger with UBS was completed.