Vontobel CEO: CS-UBS Deal Is Clear Step Toward Stability

The video discusses the merger of Credit Suisse and UBS, highlighting its role in stabilizing Swiss banking and preventing global financial contagion. It addresses concerns about UBS becoming a mega bank and the potential risks involved. The discussion also covers the bank's capitalization and market share, emphasizing the improved financial stability and the challenges of managing a large institution.

What was the primary goal of the Swiss Government and international regulators in merging Credit Suisse and UBS?

• To reduce the size of UBS

• To stabilize the Swiss financial center and prevent global contagion

• To increase the market share of Swiss banks

• To promote competition among Swiss banks

What is a potential risk associated with UBS becoming a mega bank?

• It could lead to a decrease in global market share

• It may result in higher interest rates

• It could become too large for the Swiss economy to support in case of trouble

• It might lead to increased competition in the banking sector

How does the balance sheet of the recombined bank compare to UBS's past balance sheet?

• It is larger than UBS's past balance sheet

• It is smaller than UBS's past balance sheet

• It is not mentioned in the discussion

• It is the same size as UBS's past balance sheet

What is the global market share of the combined entity in wealth management?

• 15 to 20%

• 5 to 6%

• 1 to 2%

• 10 to 12%

What aspect of the combined entity's business is considered a 'cottage industry'?

• Retail banking

• Corporate banking

• Global wealth management

• Investment banking