March 22, 2023
Louis Diamond Quoted
By Hayley Cuccinello
The expenses associated with the Credit Suisse acquisition might hamstring UBS when it comes to growth in the US. New York-based recruiter Louis Diamond said these costs may stop the bank’s aggressive recruitment efforts.
“Are they going to have enough profits to keep investing in the business because they really need to keep pace with Morgan Stanley and Wells Fargo, which are investing heavily in the wealth management business?” he said. “That’s the big question.”
But the merger gives UBS and Credit Suisse clients the thing that matters most
But the acquisition wasn’t just about rescuing Credit Suisse but restoring confidence in the Swiss banking system, Ibrahim noted. The lifeline provided by the Swiss government indicates that the new bank is too big to fail.
“This should strengthen the appeal of Swiss banking industry, in my view, as clients and investors can be assured that their interest is being looked after by the regulators,” he said.
In the short term, clients are most concerned about deposit safety and asset protection, according to Oliver, despite concerns about future service.
For one Irish billionaire and Credit Suisse client, this is what matters most.
“I don’t think there is going to be much change. This is what we have been told so far,” he said on the condition of anonymity. “Our relationship person will probably change but that is it. Deposits are safe and that is really what people care about.”
