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UBS bets on Ermotti to pull off the deal of the decade
As soon as the ink was dry on the agreement to take over Credit Suisse, UBS chairman Colm Kelleher rushed to bring ex-CEO Sergio Ermotti back to run the bank and the deal. Execution risk is off the charts, and the nerves of shareholders, employees and taxpayers are jangling.
EDITOR'S PICKS
Tokenization is spreading fast. Regulated finance is finally embracing blockchain technology just as most cryptocurrencies stand revealed as overleveraged Ponzi schemes. The institutional herd is moving, but can the blockchains they are shifting onto bear the load?
Credit Suisse came out of the global financial crisis in better shape than many peers. But fragility was never far away – in the years that followed its fortunes would swing back and forth, sometimes violently. Here is the bank’s route to 2023, explained through Euromoney’s own coverage.
The decision by its Japanese owners to relist ARM, the UK’s great technology success story, in the US instead of London was inevitable after years of decline and the hammer blow of Brexit. Deregulation might further accelerate its collapse, even as the City wins a boost from new technology bringing the vast pool of retail money into equity capital markets.
Bankers have been at pains to stress how different the world is today from the dark days of 2008: higher capital; more liquidity; lower credit risk and all that. But while individual banks may be safer than they were, collectively they arguably now face a worse existential crisis. Societies face awkward questions about how they value the utility of the banking sector – and how they should pay for it.
Opinion
The Credit Suisse deal may have merely accelerated Hamers’ anticipated departure.
Commercial real-estate losses will not greatly damage big banks in Europe, but the banks themselves could inflict real damage to commercial real estate.
The failure of venture capital’s favourite bank is bad news for a sector reliant on new injections of cheap capital to sustain loss-making growth.
What will UBS’s post-merger sustainable finance strategy look like?
Long Reads / Mag / Most Read / Ad
Long Reads / Mag / Most Read / Ad
Crisis at Credit Suisse: How we got here
Credit Suisse came out of the global financial crisis in better shape than many peers. But fragility was never far away – in the years that followed its fortunes would swing back and forth, sometimes violently. Here is the bank’s route to 2023, explained through Euromoney’s own coverage.
Pakistan tackles financial inclusion through digital banking
Pakistan has been trying to improve financial inclusion for the last 20 years with little success. Are new digital licences the answer?
Has tokenization’s time finally come?
Tokenization is spreading fast. Regulated finance is finally embracing blockchain technology just as most cryptocurrencies stand revealed as overleveraged Ponzi schemes. The institutional herd is moving, but can the blockchains they are shifting onto bear the load?
Rising rates aren’t the salvation US banks were looking for
After years at zero, rapid Fed hikes last year led to sharp increases in NII and NIM. But it is not all good news.
What They Said
WHAT THEY SAID
Dennis Kelleher, CEO of advocacy group Better Markets, is blunt about the Fed’s role in SVB’s downfall
‘How do we unlock this amazing combination of both in-market and global scale? No one else has that’
The answer, according to Santander’s executive chairman Ana Botín, lies in new chief executive Héctor Grisi
Thierry Laborde, deputy chief executive at BNP Paribas, doesn’t underplay the move from petrol to electric vehicles
Hargreaves Lansdown’s Sophie Lund-Yates reflects on the status of the London Stock Exchange
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The importance of taking an integrated approach to sustainable trade finance
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