UBS Risks: Possibly A Bridge Too Far

5. Employee Speed Dating

(Image: UBS)

In any number of departments, both employees of UBS and Credit Suisse have been scoping each other out without actually knowing whether they will be part of some future, combined team.

The intentions of UBS management have been good but if it now waits too long it runs the risk of losing more valued employees. Job-cutting is not a pleasant exercise but the bank's leadership has to be quick and decisive about it now.

6. Legal Pandora Box

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UBS faces legal charges everywhere you look, much of that due to Credit Suisse's almost edgy, brazen approach to many of them. Although it should also be said that the new UBS does benefit from the cover of the Swiss government.

At the same time, it runs a massive reputational risk. We still don't know with utter clarity what legacy risks Credit Suisse still has on the cards and all the lawsuits from angry clients and shareholders will keep the bank constantly in the headlines.

7. The Business Model

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UBS is betting its future success on the integration of Credit Suisse. But that is not enough in the long term. Investors are going to need a new story at some point, something that is likely related to wealth management, asset management – and the Swiss business.

Only then will they be in a position to see whether holding UBS shares provides enough of a payoff. The ample display of rainbow-colored flags along the Bahnhofstrasse is likely going to remain a secondary consideration to many of them.