UBS Forecasts $17 Billion Loss from Credit Suisse Rescue, Highlights Hasty Due Diligence

UBS has announced that it expects to take a financial hit of around $17 billion from its emergency takeover of Credit Suisse. This was revealed in a regulatory filing by the Swiss banking giant. UBS is taking on this responsibility as part of an effort to support the stability and sustainability of Switzerland’s two largest banks, which have been severely impacted by the coronavirus pandemic.

The move comes despite warnings from UBS that due diligence had not been properly conducted before taking over Credit Suisse, raising concerns about potential risks associated with such a large acquisition. The bank has said it will continue to monitor developments closely and make adjustments if necessary to protect its shareholders’ interests.

While some analysts are skeptical about whether such an investment can be justified given current market conditions, others believe that UBS may benefit from increased economies of scale as well as access to new markets through its acquisition of Credit Suisse assets and customer base. Only time will tell whether this risky move pays off for UBS or not but one thing is certain: there are no guarantees when investing during times like these!