UBS weighs financial sweeteners for Credit Suisse staff

LONDON Reuters - UBS Group AG told Credit Suisse wealth bankers it's weighing financial sweeteners for them to stay as it seeks to reassure key staff after the takeover, a person with knowledge of the matter told Reuters on Monday.

In a city hall for Credit Suisse employees in wealth management in Zurich, Iqbal Khan, UBS' president for global wealth management and Francesco de Ferrari, Credit Suisse's CEO for wealth management, said on Monday that the two banks will all be acting as a big family.

The executives also said that there would be retention packages, most likely for front office staff, without any further details, the person said.

UBS said on Sunday it will pay 3 billion Swiss francs $3.23 billion for 167 year old Credit Suisse and assume $5.4 billion in losses in a deal backed by a massive Swiss guarantee and is expected to close by the end of 2023.

The transaction is the first rescue of a global bank since the financial crisis of 2008

The executives didn't give any more details about job cuts during the town hall. Before the deal, Credit Suisse had embarked on a plan to slash 9,000 jobs. The number can grow to 10,000 as UBS buys Credit Suisse, according to a report by Reuters.

The acquisition will scale up the bank's global wealth and asset management franchise with more than $3.4 trillion in invested assets on a combined basis, according to a press release on Sunday.