UBS and the Swiss government have signed a Loss Protection Agreement (LPA), which will go into effect once the acquisition of Credit Suisse is complete.

Until all of the assets protected by the guarantee are realised or until UBS terminates it, the agreement will be in service.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The Swiss Confederation’s Ordinance of March 19 2023, authorised the guarantee, which is specifically described in the LPA.

In accordance with the agreement, UBS will be responsible for the first CHF5bn ($5.5bn) of any realised losses while the Swiss government guarantees damages of up to CHF9bn should they be realised on a specified portfolio of Credit Suisse non-core assets.

UBS plans to minimise potential losses and maximise value realisation on these assets by managing them with caution and diligence.

Additionally, it will pay for the Confederation’s and FINMA’s initial and ongoing external expenses related to the LPA.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

By as early as June 12 2023, UBS anticipates having acquired Credit Suisse and the takeover to be over. Credit Suisse Group will be integrated into UBS Group at that stage.

The registration statement, which covers the shares to be delivered, must be approved by the US Securities and Exchange Commission before completion may take place, and additional closing conditions must be satisfied or waived by UBS.

The New York Stock Exchange (NYSE) and SIX Swiss Exchange (SIX) will delist Credit Suisse shares and American Depositary Shares (ADS) once the process is complete.

In exchange for each 22.48 outstanding shares held by Credit Suisse shareholders, they will receive one UBS share.

Charges may apply for the trading of Credit Suisse ADS.

The debt securities that Credit Suisse Group was previously obligated to pay will now be owed by UBS Group.