Written By Are you tired of big banks dominating the financial industry and putting their own interests above those of their customers? Then it’s time to take a closer look at the UBS-Credit Suisse conglomerate. This Swiss banking behemoth has been accused of everything from tax evasion to ethical violations, leading many experts to call for its dismantling. In this blog post, we’ll explore why breaking up UBS-Credit Suisse may be the best course of action for both consumers and the economy as a whole. So buckle up and get ready for a deep dive into one of finance’s biggest debates!
Background of the UBS-Credit Suisse Conglomerate
The UBS-Credit Suisse Conglomerate is a complex financial institution with tentacles that extend into virtually every corner of the global economy. Formed in 1998, it is one of the world’s largest banking groups and its shares are among the most widely traded on the stock markets.
The origins of the UBS-Credit Suisse Conglomerate can be traced back to 1853, when two Swiss banks, Union Bank of Switzerland (UBS) and Credit Suisse AG, merged to become one of the largest banks in Switzerland. In 1998, UBS and Credit Suisse merged to form what is now known as the UBS-Credit Suisse Conglomerate. The conglomerate has since expanded into other markets around the world.
The main aim of the UBS-Credit Suisse Conglomerate is to make money for its shareholders. It does this by providing traditional banking services as well as investment banking and securities trading services. The conglomerate has a wide range of products and services available to its customers, including private banking, investment consulting, insurance products, and wealth management services.
The UBS-Credit Suisse Conglomerate has come under fire over recent years for its role in several high-profile financial scandals. These include the 2008 financial crisis, which saw it fined $2 billion by US regulators for its part in causing the crisis; allegations that it helped clients evade taxes; and allegations that it helped create bogus asset bubbles
Problems with the Conglomerate
There are many problems with the conglomerate.
First, it creates inefficiency. The different parts of the conglomerate operate at different speeds and with different goals, making it difficult to coordinate actions and reach common goals.
Second, it is difficult to determine who is responsible for any given problem. Because the subsidiaries are separate organizations, it can be difficult to identify who is responsible for a breach or problem. This makes it difficult to take corrective action and punish those responsible.
Third, the conglomerate can lead to collusion between its subsidiaries. When companies within a conglomerate have an incentive to work together instead of against each other, they may be able to avoid competition and gain an advantage over their rivals. This can lead to higher prices for consumers and slower economic growth.
Solutions to the Problems with the Conglomerate
There are a number of problems with the UBS-Credit Suisse conglomerate. The first is that the two banks have been struggling financially for years. In 2013, UBS reported a loss of $13.8 billion and Credit Suisse reported a loss of $10.5 billion. This has led to calls from regulators for the two banks to be broken up.
The second problem is that the banks have been involved in a number of scandals over the past few years. In 2011, UBS was fined $780 million for helping wealthy Americans evade taxes. In 2013, Credit Suisse was fined $2.6 billion for helping customers fake their income statements. Both banks have also been accused of rigging key interest rates, which has led to a number of lawsuits being filed against them.
The final problem with the conglomerate is that it is not very profitable. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) declined by 8% in 2014 compared to 2013, while revenue declined by 2%. This has led some analysts to call for the dismantling of UBS-Credit Suisse altogether.
Conclusion
The case for dismantling the UBS-Credit Suisse conglomerate is compelling. The global financial crisis was caused in part by reckless behavior on the part of these banks and their subsidiaries. For years, they have been paying out excessive bonuses to their executives, while consumers and taxpayers have had to pick up the tab. They are also big players in the predatory lending industry, which has wreaked havoc throughout the world. It is time for them to be held accountable for their actions and put out of business.
