UBS estimates that the immediate takeover of Credit Suisse will result in losses of approximately $17 billion.
In a notice to the U.S. Securities and Exchange Commission (SEC) late Tuesday night, the Swiss banking giant cited nearly $13 billion in negative impacts on fair value adjustments of its assets and liabilities, as well as a potential $4 billion impact from litigation and regulatory costs. .
Credit Suisse was on the verge of collapse, with massive customer deposit withdrawals and rapidly falling share prices, while it had purchased UBS’s embattled domestic competitor for 3 billion Swiss francs ($3.4 billion).
UBS underlined that the short time it had to do due diligence may have affected Credit Suisse’s ability to fully assess its assets and liabilities.