On Tuesday, there was a regulatory filing, and according to them, there will be certain restrictions on doing business that will be faced by Credit Suisse Group AG, and these restrictions will be there until UBS Group AG’s acquisition is completed.
According to the filing, in some cases, Credit Suisse cannot lend the new credit facility or credit line if the amount exceeds 50 million francs for non-investment-grade borrowers and more than 100 million francs for investment-grade borrowers.
Credit Suisse cannot sign up for the contract, which is worth more than 3 million francs per year, and cannot acquire any capital expenditure, which is worth more than 10 million francs.
In addition, while this merger is underway, Credit Suisse cannot impose any “material amendments” to the terms and conditions of the employee, which include pension entitlements and remuneration.
As Credit Suisse was merged with its rival UBS group in March, as it was a proper government-engineered takeover, UBS is integrating its rival at the moment. As UBS was preparing to end the rescue of Credit Suisse, it is said the UNS had set $4 billion aside in preparation for any legal action and regulatory issues.
After the acquisition of Credit Suisse, it was estimated by UBS that they had $34.8 billion in “negative goodwill” from the acquisition.
