UBS Admits It Was Rushed Into Unwanted Credit Suisse Rescue

UBS Group AG was rushed into buying cross-town rival Credit Suisse Group AG in a deal it did not want, as a global bank crisis worsened the latter's finances and prompted authorities to take swift action, a regulatory filing showed, Kane Wu reported for Reuters.

Photo Insert: UBS, in a filing to the US Securities and Exchange Commission (SEC), told investors it had less than four days to conduct due diligence given the "emergency circumstances."

UBS, in a Tuesday filing to the US Securities and Exchange Commission (SEC), told investors it had less than four days to conduct due diligence given the "emergency circumstances."

It estimated a hit of about $17 billion from the takeover. Switzerland's biggest bank agreed to buy its smaller rival after the latter had endured a difficult year.

Credit Suisse's involvement in a series of corporate collapses spooked clients who began withdrawing their money, a trend that accelerated when US bank failures sparked fear of a broader banking crisis.

The wave of deposit outflows and a major share-price drop prompted Switzerland's central bank on March 15 to offer Credit Suisse liquidity assistance.

The next day, UBS and Credit Suisse signed a confidentiality agreement upon which the former began due diligence, the UBS filing showed.

On March 19, the Swiss National Bank announced UBS would buy Credit Suisse for 3 billion Swiss francs ($3.4 billion) in stock and assume a loss of as much as 5 billion francs stemming from winding down part of the business.

The final price was raised from an initial 1 billion francs, the filing showed.

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