Credit Suisse Settles Mozambique 'Tuna Bond' Scandal It Inherited From UBS

Credit Suisse reaches last-minute out-of-court settlement with Mozambique over $1.5B "tuna bond" scandal it inherited after acquiring UBS.
Settlement resolves legal dispute stemming from 2013 deal between Mozambique state companies and shipbuilder Privinvest.
UBS will forgive part of $100M loan Credit Suisse gave Mozambique in 2013.
Settlement includes most creditors involved in funding 2013 loan to Mozambican state company ProIndicus.
French shipping mogul Iskandar Safa and Privinvest remain key defendants in ongoing London High Court battle over case.

reuters.com

Relevant topic timeline:

8/27/2023

Credit Suisse posted $4 billion loss in second quarter, Sonntagszeitung reports

Credit Suisse, now a subsidiary of UBS, reported a second-quarter loss of 3.5 billion Swiss francs ($4.0 billion), aligning with its earlier forecast of a significant pre-tax loss, attributed to restructuring and financing costs.

8/28/2023

Swiss Competition Commission examining UBS takeover of Credit Suisse

Switzerland's Competition Commission is investigating UBS's acquisition of Credit Suisse, with the results expected to be sent to FINMA by the end of September.

8/29/2023

After Credit Suisse takeover, UBS gives first glimpse of new group

UBS will release its first earnings report since acquiring Credit Suisse, revealing the extent of damage to Credit Suisse's reputation, potential outflows of clients from UBS, decisions regarding the future of Credit Suisse's Swiss arm, expected job cuts, and a focus on restructuring rather than net profit.

8/30/2023

UBS winds down Credit Suisse Global Markets business - client letter

Credit Suisse will reduce its new markets business and UBS will focus on consolidating new client activity as they integrate following their merger.

8/31/2023

UBS to slash 3K jobs despite posting $29B profit since Credit Suisse...

Swiss banking giant UBS plans to save $10 billion in costs by integrating Credit Suisse's operations, which includes 3,000 staff reductions, following their government-orchestrated merger.

9/24/2023

Credit Suisse Collapses After 167 Years Due to Mismanagement; Switzerland Looks Beyond Banking

The demise of Credit Suisse marks a milestone for Switzerland, but it is not a turning point as big banks have already been failing since the 1990s, and the 2008 financial crisis had a greater impact. State intervention has become the norm to prevent a global financial meltdown, and government bailouts are no longer shocking. The incompetence of the management and the board of directors played a significant role in the collapse of Credit Suisse, and the bank's demise was mainly due to greed and poor leadership. The future of UBS as a large banking giant is uncertain, and it is likely that the government will need to step in again. The global financial system is fragile, and greater regulation will not solve the problem. Switzerland can still afford to have a major global bank, but stability and advantages can be achieved by spinning off problematic international operations. The importance of being an international financial hub for Swiss prosperity is overstated, and industry has always been the primary driver of Swiss prosperity. High wages and the attraction of the banking sector have hindered innovation in other industries.

9/30/2023

UBS Denies Knowledge of Reported DOJ Probe Into Helping Russian Clients Evade Sanctions

UBS denies knowledge of a US Department of Justice probe into Credit Suisse's compliance-related missteps on allowing Russian clients to evade sanctions, after a report by Bloomberg stating UBS had been briefed on the matter.

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Posted 10/1/2023, 3:10:00 PM