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Anyone who expected a storm of outrage was wrong. The merger or acquisition project uncovered by UBS / CS sparked little negative reaction, at best incredulous astonishment.
In western Switzerland, which is in many respects more international than German-speaking Switzerland, but also has a weak business press, there has been little interest in this case so far.
As expected, the contours are now sharper. Axel Weber wants to give Switzerland and Europe a real great bank that can prevail on the world stage for major global clients.
Meanwhile, everyone knows one thing: This is not a mega deal and an elephant wedding, as Peter Burkhardt, economics director of the Sunday newspaper, describes it.
In contrast, the UBS Group and the Credit Suisse Group tend to be at the bottom of the world’s fifty largest banks on a global scale, which to some extent is at the bottom.
When evaluating this merger, many Swiss, including businessmen and journalists, squint.
They believe that Switzerland is great because it is rich.
They think that Switzerland is great because its companies have created an economic empire that goes far beyond national borders and generates great profits.
They think Switzerland is great because, with the two technical universities in Zurich and Lausanne, it has two world-class educational institutes.
It’s easy to forget that the 150 largest Swiss corporations, including UBS and CS, have long been owned by foreign finance companies and other foreign shareholders.
The merger of UBS and CS will not be decided in Bern, but in London and New York, in Oslo and Singapore, in Riyadh and in the United Arab Emirates.
Therefore, it would be reckless for the Federal Council, Finma, and Comco to make “Trump” and stand in the way of a “global deal.”
Because Axel Weber intends to do a “big deal” now that the time is right.
The second step would be to take over another large German or English bank, which would make Europe competitive again and Switzerland would have an institute that would again generate real profits.
The appointment of Dutchman Ralph Hamers as CEO of the UBS Group shows how serious Axel Weber is. This was presented in Switzerland as an IT specialist. But he is much more than that, a top banker who is used to breaking down complex structures and putting them back together.
The new big Swiss bank would have an ideal top team: Weber, the well-established world strategist, Hamers the perfect implementer.
The era of small states is over, I wrote a year ago on Inside Paradeplatz.
Switzerland is the best proof of this, as it constantly grows beyond its narrow borders, which date back to the Middle Ages.
Federal Councilor Ignazio Cassis even wants to become a member of the UN Security Council, that is, to have a voice in war and peace in the world.
Isn’t it logical that we need global corporations like Schindler, Roche and Novartis, Nestlé, SGS, Rolex and many more in every industry?
Are there losers?
Certainly not wealthy corporations.
Owners and heads of Swiss midsize companies like to have several irons in the fire, but the smartest ones already have a large selection and buy financial services globally because it is cheaper than in their own country.
Smaller clients will of course jump to Cantonal and Raiffeisen banks for challenge. That has always been the case, let’s just remember that the Zürcher Kantonalbank was founded by Alfred Escher as a bank for the little ones against the Swiss credit institution at that time.
As we can see today, nobody suffered it.
Let’s turn the tables: Would Credit Suisse suddenly be more successful if Philipp Hildebrand became its top boss as president?
I’m sure he wouldn’t do that to himself. As Vice President of Blackrock, he plays at the top of the world league. Go back to a small Swiss bank? That would be his biggest mistake.
Or Mario Greco, CEO of Zurich Insurance? He’s done a great job, but he’s not done yet. It also needs a big leap in quality.
Or Thomas Jordan, current president of our National Bank? I think he must first show how he can get out of the 800 billion new money trap made by himself. Jumping out of there now would be a miserable sign.
Employees of both banks will undergo this restructuring. Few will go up, many will have to go down.
Hence the resistance of Thomas Gottstein, the new CEO of Credit Suisse, can be understood.
It is smart who does not go against the trend. This means: Suitable for the world market.
