UBS Chief Explains Preparation for Credit Suisse Takeover and Calls for Stronger Coordination from Regulatory Authorities

Colm Kelleher, Chairman of the Board of UBS, reveals a detailed picture of his bank's meticulous preparation for the takeover of Credit Suisse, considering multiple scenarios. In 'NZZ am Sonntag,' he emphasized the significance of intensive coordination work between regulatory authorities and central banks for the future. For Kelleher, the anticipation of Credit Suisse's downfall was a foregone conclusion with the presentation of the bank's strategic plan in October 2022. External advisors supported UBS from November of that year in addressing the impending challenge. Through foresight and effectiveness, UBS strategically positioned itself. An effective crisis structure with a command center, a skilled strategy committee, and the well-connected Swiss Vice Chairman Lukas Gähwiler was already operational in March 2023. The impending merger was akin to a marriage with an indecisive partner, a challenge that, according to Kelleher, UBS overcame through swift action. Despite tense moments and the need to involve regulatory authorities in negotiations, Kelleher praised the work of the Swiss Financial Market Supervisory Authority (Finma). However, retrospective examination also reveals the limited powers of Finma, exemplified by letters to the Board of Directors of Credit Suisse, which Kelleher reviewed. The consequences of communication between Finma and a U.S. bank compared to the Swiss situation highlight the need for better regulations. Therefore, the UBS Chairman calls for the establishment of new instruments for financial oversight and raises the central question of future regulatory architecture to make the supervision and coordination of central banks more effective.