Swiss prosecutors have launched an investigation into UBS’s abrupt acquisition of Credit Suisse, the country’s second-largest bank.
When concerns about Credit Suisse’s financial situation arose last month, the transaction was rushed through.
The Federal Prosecutor of Switzerland announced on Sunday that it would investigate any potential “criminal offenses” that had been committed.
Credit Suisse and UBS both declined to comment.
After a weekend of emergency talks between the two banks and the country’s financial regulators, the agreement for UBS to acquire Credit Suisse, which was backed by the Swiss government, was quickly put together.
The Swiss National Bank said the agreement was best for restoring financial market trust and managing economic risks.
At the time of the purchase, markets were nervous about the global financial system after two minor US banks failed.
When the deal was disclosed, Credit Suisse was valued at $3.15 billion (£2.6 billion). Whereas it was valued at $8 billion on the Friday before the settlement was reached.
However, the transaction has enraged taxpayers and shareholders of both banks, who were denied the opportunity to vote on the acquisition. Some have also argued that it has hurt Switzerland’s reputation as a global financial center.
In a statement released on Sunday, the Federal Prosecutor of Switzerland stated that there are “numerous aspects of events surrounding Credit Suisse” that must be investigated to identify any potential “criminal offenses.
“The Office of the Attorney General wants to fulfill its mandate and responsibility to contribute to a clean Swiss financial center in a proactive manner, and has set up a monitoring system so that it can take immediate action on any issues that fall within its area of responsibility,” the statement continued.
It further stated that it had contacted “national and cantonal authorities” and that “investigative orders were also issued.”
On Sunday, Tages-Anzeiger claimed that the newly merged UBS-Credit Suisse bank planned a 20-30% staff reduction.
The combined bank will have over 120,000 employees worldwide. According to the report, 11,000 employees could be lost in Switzerland.
