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UBS Group said it is voluntarily terminating, with immediate effect, its CHF9bn ($10bn) loss protection loan agreement which was agreed with the Swiss government ahead of the historic takeover of Credit Suisse.
The bank’s decision to end the loan protection agreement, which propped up the takeover deal, also follows severe stress loss scenarios. Its termination includes an end to the public liquidity backstop guaranteed by the Swiss National Bank, for up to CHF100bn.
In a statement on 11 August, the Swiss bank said it had paid back all extraordinary liquidity measures based on emergency law put in place on 19 March 2023, when it was in the midst of agreeing on the deal.
The latest announcement, ahead of its second-quarter results on 31 August, comes as the bank prepares to update staff and shareholders on major developments since the merger.
READ Credit Suisse unveils investment bank leaders to push through UBS transition
The results will be keenly watched by rivals in the market as UBS begins to execute its strategy for combining the two banks.
In a memo to staff on 11 August, seen by Reuters, UBS said: “It should be clear to all of us that we still have a lot of work ahead of us to realize the full potential value from this transaction.”
Killing off the Credit Suisse brand
Meanwhile, UBS has also started work to reinforce its branding as the major bank following the takeover of Credit Suisse.
The bank has begun pulling down Credit Suisse’s international brand, replacing signs at the US offices – such as the New York head office in Madison Avenue – and other major outposts with its own name, people familiar with the matter told the Financial Times.
Similar moves are expected at Credit Suisse’s 21-story London head office in Canary Wharf, the FT reported.
READ How Credit Suisse’s collapse is upending the dealmaking pecking order
While the Credit Suisse brand of around 167 years is to be phased out completely, questions remain over plans for the business in Switzerland, where discussions are underway to decide whether to sell the domestic business.
The Swiss bank is paring back its workforce after the $3.2bn acquisition by its cross-town peer, and began its latest round of redundancies on 31 July, with around 40 UK employees axed as part of the first wave of cuts.
A further 200 staff within its investment banking and capital markets unit have been laid off globally, people familiar with the matter told Financial News.
Cuts have also begun in its Asia business, with plans to trim the Hong Kong dealmaking staff by 80%, according to reports.
To contact the author of this story with feedback or news, email Penny Sukhraj
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