- UBS, once a global behemoth that almost collapsed during the 2008 financial crisis, has now acquired rival Credit Suisse Group AG, creating a monolith towering over the local competition.
- The combined UBS is about twice the size of Switzerland’s entire annual economy and is now too big to fail, and too big to bail.
- The deal will alter the world’s financial landscape, with Singapore closing in on Zurich and Geneva's private-wealth managers.
- Swiss banking's reputation has been tarnished and other European banks will almost certainly cast an eye toward Switzerland as a place to open up shop now that there’s one fewer competitor.
- The merger could lead to higher costs for customers and redundancies for staff, and is expected to undermine the ability of export-oriented companies to compete abroad.
The Triumph of UBS Is Also the Humbling of Swiss Banking
After the fall of Credit Suisse and its hastily arranged merger with its rival—and the return of former UBS chief Sergio Ermotti—Switzerland sees just one big winner and a lot of losers.
Hugo Miller
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