(Reuters) – UBS said on Tuesday it was in discussions with Swiss authorities over protections against losses related to the takeover of Credit Suisse.
This announcement shows that the details concerning the acquisition of Credit Suisse, decided in March, have not yet been settled.
The Swiss government agreed at the time to assume up to 9 billion Swiss francs (9.26 billion euros) of potential losses related to the operation and offered cash assistance of up to 100 billion Swiss francs.
Negotiations regarding a definitive loss protection agreement continue, UBS said in a regulatory filing on Tuesday.
The group said in the document that it expects the details of a loss protection agreement to be worked out before the Credit Suisse acquisition is finalized.
The bank is also in discussions with the Swiss Financial Market Supervisory Authority (FINMA) regarding “certain prudential capital requirements, measures of risk-weighted assets and other capital requirements and liquidity for the combined business”.
UBS, which expects to complete the acquisition of Credit Suisse by early June, said it does not expect these issues to be resolved before then, however.
(Report Manya Saini, with the contribution of Greg Roumeliotis; Camille Raynaud)
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