FirstFT: UBS units tight guidelines for Credit score Suisse bankers to ease takeover dangers

Our prime story at the moment is on UBS, which has drawn up a listing of practically two dozen “pink strains” that prohibit Credit score Suisse bankers from a variety of actions in an effort to decrease threat because it prepares to take over its ailing rival as early as at the moment.

Banned actions embrace taking over shoppers from high-risk international locations comparable to Libya, Russia, Sudan and Venezuela and launching new merchandise with out approval from UBS managers, in line with folks with data of the measures. Ukrainian politicians and state-owned enterprises can even be blocked to stop potential cash laundering.

“We’re apprehensive about ‘cultural contamination’,” UBS chair Colm Kelleher mentioned final month about taking over Credit score Suisse workers. “We’re going to have an extremely excessive bar for who we convey into UBS.”

The prohibitions, written by UBS’s compliance division, are designed to scale back the chance of the transaction, which was orchestrated by Swiss authorities three months in the past to avoid wasting Credit score Suisse from collapse.

Right here’s what else I’m preserving tabs on at the moment:

  • Nato: Secretary-general Jens Stoltenberg visits US president Joe Biden on the White Home to debate the navy alliance’s summit in Vilnius, Lithuania, subsequent month, the place the battle in Ukraine will prime the agenda.

  • Financial information: The US publishes its federal price range stability.

  • Outcomes: US software program firm Oracle reviews.

  • Russia Day: Monetary markets are closed within the nation.

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5 extra prime tales

1. Unique: EU funds managed by Odey Asset Administration are discussing restrictions on traders’ withdrawals as a part of emergency measures to comprise the fallout of sexual misconduct allegations in opposition to the hedge fund supervisor’s founder. Learn the complete story.

2. Andreessen Horowitz has chosen London for its first workplace exterior the US, betting that the UK authorities will create a extra hospitable local weather for blockchain start-ups amid a crypto crackdown by American monetary regulators. Learn extra on the Silicon Valley enterprise capital agency’s transfer.

  • Associated: US enterprise confidence within the UK has fallen for the third 12 months in a row as a result of Brexit, rising company taxes and political turmoil in Westminster, in line with new analysis.

3. The Dutch authorities plans to vet worldwide college students after universities barred some Chinese language postgraduates from prime know-how levels over fears they could possibly be a threat to nationwide safety, the most recent signal of a stricter stance from EU international locations on perceived threats from Beijing after many years of openness. Listed here are extra particulars on what sparked the issues.

4. Unique: Lex Greensill and 4 former Credit score Suisse bankers have been named as suspects in a Swiss prison case as a result of be formally opened this month. The case is expounded to the collapse of a $10bn group of funds the financial institution provided shoppers that have been linked to the Australian banker’s specialist finance group, Greensill Capital. Learn the complete story.

5. Ukraine claimed to have breached Russia’s defences and freed a minimum of three villages yesterday within the south of the Donetsk area. The day earlier than, President Volodymyr Zelenskyy had confirmed Kyiv’s long-awaited counter-offensive was lastly below method, with the intention to liberate some 18 per cent of occupied territory in south-eastern areas.

The Massive Learn

© Rory Griffiths/FT/Getty Pictures

With the collective weight of the US Federal Reserve’s forceful financial tightening efforts to this point and the retreat by regional lenders throughout the nation within the wake of a string of financial institution failures, there’s rising apprehension that the American economic system’s resilience is lastly starting to crack.

We’re additionally studying . . . 

Chart of the day

A majority of economists polled by the Monetary Occasions forecast the US Federal Reserve will raise its benchmark charge to a minimum of 5.5 per cent this 12 months. Fed funds futures markets counsel merchants favour only one extra quarter-point charge rise in July.

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Take a break from the information

Former French president François Hollande sits down with editor Roula Khalaf for Lunch with the FT to debate French politics, the battle in Ukraine and coping with the Kremlin. “Putin can’t be seduced,” Hollande mentioned. “He respects pressure.”

Art of François Hollande
© James Ferguson

Extra contributions by Benjamin Wilhelm and Gordon Smith

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