Swiss Price Regulator Puts UBS Under Observation

Switzerland's consumer pricing watchdog has placed UBS under observation following its takeover of Credit Suisse, the regulator said. Concerns have arisen that the market power of the enlarged lender could lead to higher loan charges, reported John Revill and Oliver Hirt for Reuters.

UBS recently announced it had completed the merger of its domestic unit with Credit Suisse's operations in its home market. I Photo: Ank Kumar Wikimedia Commons

The supervisor met with financial market regulator FINMA, competition authority ComCo, and the Swiss National Bank to discuss the consequences of the takeover, it said in a statement.

The meeting laid the groundwork for necessary cooperation between the different authorities in the future.

On Monday, UBS announced it had completed the merger of its domestic unit with Credit Suisse's operations in its home market. A UBS spokesperson pointed to previous statements noting that there was plenty of competition within the Swiss banking sector.

Last month, FINMA ruled that the takeover did not create any competition concerns, despite recommendations from ComCo for further scrutiny.

On Monday, UBS announced it had completed the merger of its domestic unit with Credit Suisse's operations in its home market. A UBS spokesperson pointed to previous statements noting that there was plenty of competition within the Swiss banking sector.

Last month, FINMA ruled that the takeover did not create any competition concerns, despite recommendations from ComCo for further scrutiny.