UBS cuts nearly 70% of Credit Suisse researchers in Hong Kong. Two people said that as the two Swiss banking titans integrate operations, UBS (UBSG.S) has slashed 70% of Credit Suisse’s securities research unit’s Hong Kong personnel.
In March, Swiss authorities rushed UBS’ buyout of Credit Suisse, the largest bank merger since the 2008 global financial crisis, to save Credit Suisse.
Reuters reported on Sept. 5 that UBS acquired Credit Suisse’s Securities Research unit this month as part of its merger.
Sources stated more than 15 equity researchers were told of the Hong Kong layoffs earlier this week, and less than 10 Hong Kong and China equity researchers will join UBS.
UBS wouldn’t comment. Credit Suisse declined Reuters’ request for comment.
A client memo received by Credit Suisse and reviewed by Reuters said the Asia Pacific equities strategy coverage was terminated on Monday due to personnel cutbacks.
Two sources and another source stated Charles Zhou, who oversaw China financials at Credit Suisse, and Kenneth Fong, who oversaw China Internet and Asia gaming research, are joining UBS. Sources said both will bring Credit Suisse junior researchers.
Zhou and Fong did not respond to a request for comment. After Credit Suisse’s years of scandals and losses until its rescue in March, UBS’ buyout is the first global systematically important bank merger.
UBS CEO Sergio Ermotti said Tuesday that the Swiss bank, which merged with Credit Suisse earlier this year and controls $5.5 trillion in assets, was moving forward.
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