Tag: UBS Group

The US Supreme Court will use an appeal by a fired UBS Group research strategist to decide how hard it will be under federal investor-protection law for whistleblowers to win suits claiming retaliation. The justices agreed on Monday to hear arguments from Trevor Murray, who is seeking to reinstate a $900,000 jury verdict he won on allegations that he was fired for refusing to skew his reports to help the company’s business strategies.

A few minutes ago, Bloomberg announced that UBS is buying troubled rival Credit Suisse for the equivalent of $2 billion in a deal brokered by the Swiss government. The transaction is probably rightly being called hístorical. The Credit Suisse crisis has nothing to do with crypto like the U.S. collapsed Silicon Valley Bank or Signature Bank. Credit Suisse perfectly represents the broken traditional banking system.

Credit Suisse is Switzerland’s second-largest bank after UBS Group, with assets of around $580 billion at the end of 2022, more than twice the size of Silicon Valley Bank (SBV), which failed last week. Over the last few days, Credit Suisse shares and bonds have lost massive value because of nasty rumors. The bank announced it would borrow up to 50 billion Swiss francs ($53.7 billion) from the Swiss National Bank (SNB) to shore up its liquidity.

In the U.S., the banking giant JP Morgan paid $175 million for Frank, a fintech startup founded by former CEO Charlie Javice in 2016. Frank offers software to improve the student loan application process for young Americans seeking financial aid. Now, JP Morgan is suing the 30-year-old founder and the startup's former Chief Growth Officer, Olivier Amar for allegedly lying about its scale and success by creating an enormous list of fake users to entice the financial giant to buy it.

The Dutch UBS CEO Ralph Hamers allegedly prides himself on his digital banking expertise. However, this is not backed up by recognizable achievements. On the contrary. Most recently, UBS announced that its prestigious $1.4 billion deal with digital wealth manager US Wealthfront, announced in January 2022, has been canceled. No reason was given. Already in his time as CEO of Dutch ING, Ralph Hamers made a $450 million mistake in 2018 with the acquisition of Payvision. In 2121, ING announced the termination of the Payvision business.