Credit Suisse (CS), UBS AG (UBS) to Create Domestic, Non-Investment Banks

Michael Teague |

While major US financial institutions were enjoying a solid gains amid heavy trading on Thursday, less attention was paid to some significant moves made by Swiss banks UBS AG (UBS) and Credit Suisse Group (CS) .

Credit Suisse, the country’s second-largest bank, announced on Thursday that it would submit a proposal to Swiss regulators that would see its domestic operations walled off into a separate unit, with the intent of precluding the need for a taxpayer funded bailout should global economic conditions take another turn for the worse.

The announcement comes shortly after UBS, the country’s largest bank, said it had been considering a similar course of action, and for the same reasons.

The new domestic segments would be entirely separate from either company’s investment banking operations, ostensibly protecting Swiss citizens from the most pernicious consequences of another financial crisis. The separation from investment banking would also lower capital requirements that have increased dramatically for large financial institutions since 2008.

The Swiss banks have claimed that the effort is the result of the lack of progress on a global framework for financial regulation in the wake of 2008’s crash. Government regulators in the US and the UK have both sought to impose a variety of measures and requirements on financial institutions both foreign and domestic, however. Credit Suisse commented on the news by saying “These changes are designed to both meet future requirements for global recovery and resolution planning and result in a substantially less complex and more efficient operating infrastructure for the bank,”.

UBS AG was trading only slightly lower heading towards the closing bell, down 0.11 percent to $18 per share, while Credit Suisse was up 0.70 percent to $28.61.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
ASCBQ Ascendia Brands Inc 0.00 0.00 0.00 0


Emerging Growth

Enertopia Corp

Enertopia Corp is engaged in the exploration of lithium in Nevada, USA. The Company's project includes Central Nevada Lithium Brine Projects.

Private Markets


The spark hit Jamie when he saw co-workers competing to lose weight. Instead of pizzas and subs, they were eating salads and jogging along the river. Some were sneakily leaving…


D-Wave Systems is the first quantum computing company. Its mission is to integrate new discoveries in physics, engineering, manufacturing, and computer science into breakthrough approaches to computation to help solve…