UBS Group AG
CASE STUDY
What did we do?
Baker McKenzie Switzerland, in its longstanding relationship with UBS Group AG (UBS), acted as sole legal advisor to UBS in connection with the Loss Protection Agreement (LPA) with the Swiss Confederation. The loss protection guarantee governed by the LPA is a cornerstone element of the merger between UBS and Credit Suisse and became effective with the completion of the merger of the two banks on 12 June 2023.
The acquisition of the Credit Suisse by UBS was momentous as the first-ever combination of two global systemically important financial institutions.
Represented UBS on the conclusion of a LPA with the Swiss Confederation of up to CHF 9 billion
In depth review
Baker McKenzie Switzerland acted as sole legal advisor to UBS in connection with the LPA.
The agreement was entered into on 9 June 2023 and became effective upon completion of the acquisition of Credit Suisse by UBS. It will remain in effect until the realization of all assets covered by the guarantee, or until it is terminated by UBS.
The LPA sets out the detailed terms of the guarantee authorised by the Swiss Federal Council's Ordinance of 16 March 2023. As part of the agreement, the Swiss government guarantees losses of up to CHF 9 billion if realised on a designated portfolio of Credit Suisse non-core assets once UBS bears the first CHF 5 billion of any realised losses. UBS will manage these assets in a prudent and diligent manner and intends to minimize any losses and maximize value realization on these assets. It also will cover the initial and ongoing external costs incurred by the Confederation and FINMA, the Swiss financial regulator, for the LPA.
On 11 August 2023, UBS terminated the LPA.
Baker McKenzie is one of the largest law firms in Switzerland. Our offices in Geneva and Zurich have been an integral part of the Swiss legal landscape for more than half a century, firmly establishing us as a prominent force for our domestic and foreign clients. Our vast, experienced team of experts, composed of more than 130 lawyers, is providing Swiss and multinational industry players, financial institutions, private equity houses and insurance companies with top-tier legal advice.
Led by banking & finance partners Lukas Glanzmann and Markus Wolf, the Baker McKenzie core team on the LPA for UBS included Sammy Guidoum (associate, banking & finance) and was supported by various colleagues from the tax, capital markets, financial services and dispute resolution teams.
Our team
Journey to the LPA
10 March 2023
Silicon Valley Bank collapses;
the banking crisis begins
16 March 2023
Swiss Federal Council's Ordinance authorises LPA guarantee
19 March 2023
UBS acquires Credit Suisse for CHF 3 billion
9 June 2023
LPA agreement entered into between UBS and the Swiss Confederation
12 June 2023
UBS completes its merger
with Credit Suisse
11 August 2023
UBS terminates LPA
Lukas Glanzmann
and Markus Wolf: very good negotiation skills, excellent knowledge of finance, corporate law and related topics. Legal 500
Cedric Foussard
Director, Global Initiative on Justice With Children
Markus Wolf
Partner, Zurich
Lukas Glanzmann
Partner, Zurich
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Baker McKenzie is one of the largest law firms in Switzerland. Our offices in Geneva and Zurich have been an integral part of the Swiss legal landscape for more than half a century, firmly establishing us as a prominent force for our domestic and foreign clients. Our vast, experienced team of experts, composed of more than 130 lawyers, is providing Swiss and multinational industry players, financial institutions, private equity houses and insurance companies with top-tier legal advice.
Led by banking & finance partners Lukas Glanzmann and Markus Wolf, the Baker McKenzie core team on the LPA for UBS included Sammy Guidoum (associate, banking & finance) and was supported by various colleagues from the tax, capital markets, financial services and dispute resolution teams.
Baker McKenzie is one of the largest law firms in Switzerland. Our offices in Geneva and Zurich have been an integral part of the Swiss legal landscape for more than half a century, firmly establishing us as a prominent force for our domestic and foreign clients. Our vast, experienced team of experts, composed of more than 130 lawyers, is providing Swiss and multinational industry players, financial institutions, private equity houses and insurance companies with top-tier legal advice.