UBS expects $17bn hit from Credit Suisse purchase

UBS has revealed that the cost of taking over scandal-ridden rival Credit Suisse will result in a financial hit of around $17bn.

The bank said it expected a $13bn loss from fair value adjustments of UBS and Credit Suisse’s combined assets and liabilities, along with a $4bn for potential litigation and regulatory costs.

UBS agreed in March to take over its doomed rival for $3.2bn as it struggled with huge losses and a series of scandals after getting involved with a series of corporate collapses that rattled clients who started to withdraw their cash.

Reporting by Frank Prenesti for Sharecast.com