Financial Institutions

In Switzerland, up to 11,000 employees could be affected by the UBS takeover of Credit Suisse. UBS Group plans to cut its workforce by between 20% and 30%, slashing as many as 36,000 jobs worldwide, Swiss newspaper Sonntagszeitung reported, citing a senior manager at UBS.

Shares of Jack Dorsey's Fintech Block plunged about 18% this week after short-seller Hindenburg Research accused the company of systematically facilitating fraud and violate regulatory rules.

After the laboriously negotiated takeover of the ailing Credit Suisse by the Swiss central bank UBS, unrest continues to reign in the financial markets. The Deutsche Bank share is one of the biggest losers on the DAX ahead of the weekend. However, the recent slump in the share price offers no cause for concern for German Chancellor Olaf Scholz.

Prices of AT1 bonds have come under pressure on Monday. The reason: with UBS's takeover of Credit Suisse, Additional Tier 1 bonds worth around 16 billion francs were declared worthless.

TARGET, a new system that allows the settlement of payments in euros and in real-time, which provides greater security, went live today, indicated the Bank of Portugal (BdP).

UBS is taking over its rival Credit Suisse, which has slid deep into crisis. Bantleon Chief Economist Daniel Hartmann nevertheless sees no end to the banking crisis and warns of significant setbacks on the stock market. The Swiss Market Index (SMI) has lost almost 6% in the last four weeks.

DekaBank manages €360 billion in assets and plans to offer crypto products to its institutional clients. The German lender is joining Societe Generale and Citibank in selecting Swiss-based Metaco to develop its digital asset offering for institutional clients, according to a CoinDesk report.

The audit and consulting firm EY, which hit the headlines because of the Wirecard scandal, want to part with 40 of its 800 partners and hundreds of employees in Germany. At the same time, it intends to hire 2000 new employees. According to the Financial Times, most of the 40 partners affected by the downsizing program will be from the audit division.

The European Central Bank (ECB) has ordered Deutsche Bank to back its business with more equity. As a result, the individual capital surcharge for the bank will rise by 0.2 percentage points to 2.7 percentage points. Under the ECB decision, Deutsche Bank must report a Common Equity Tier 1 ratio of at least 10.55% at the group level, compared with 10.43% as of September 2022.