All articles tagged with #financial hit
UBS is expected to face a financial hit of hundreds of millions of dollars due to Credit Suisse's Archegos failings. The losses are related to UBS's role as a prime broker for Archegos, which collapsed in March after failing to meet margin calls. Credit Suisse has already reported losses of $4.7bn due to the scandal.
UBS estimates a financial hit of about $17 billion from the takeover of Credit Suisse, including $13 billion from fair value adjustments and $4 billion in potential litigation and regulatory costs. However, UBS also estimated it would book a one-off gain of $34.8 billion by buying Credit Suisse for a fraction of its book value. The financial cushion will help absorb potential losses and could result in a boost to the lender’s second-quarter profit if UBS closes the transaction next month as planned. The integration process could take three to four years.
UBS estimates a financial hit of around $17 billion from its emergency takeover of Credit Suisse, according to a regulatory filing, and said the rushed deal may have affected its due diligence. The bank flagged a total negative impact of around $13 billion in fair value adjustments of the new combined entity's assets and liabilities, along with a potential $4 billion hit from litigation and regulatory costs. However, UBS also expects to offset this by booking a one-off $34.8 billion gain from so-called "negative goodwill," which refers to the acquisition of assets at a much lower cost than their true worth.
UBS estimates a financial hit of about $17 billion from the takeover of Credit Suisse, including $13 billion from fair value adjustments and $4 billion in potential litigation and regulatory costs. However, UBS also estimated it would book a one-off gain of $34.8 billion by buying Credit Suisse for a fraction of its book value. UBS said the estimates were preliminary and the numbers could change materially later on. The bank also said it might book restructuring provisions after that, but offered no numbers.