UBS holds first shareholder meeting since controversial Credit Suisse takeover

UBS will hold its annual meeting on Wednesday morning amid a fraught political backdrop, following a takeover of a fallen rival. Credit Suisse last month.

Shareholders gathered in Basel will be looking for reassurance that the board has a clear plan after the “pistol wedding” between Switzerland’s two largest banks, which is still mired in controversy, risks legal and public skepticism.

New CEO Sergio Ermotti will take over on Wednesday after he shocking re-appointment last weekwhen UBS took on the colossal task of consolidating the businesses of its fallen compatriot.

Ermotti’s return is seen by many commentators as an attempt to restore calm, given the country’s longstanding economy. reputation for financial stability teeters on the line.

Concerns remain about the size of the new entity and whether it creates too many centralizing risks for the Swiss and global economy, while reports suggest UBS’ plans could include including a reduction of approximately 20-30% of the combined entity’s global workforce.

Credit Suisse holds the last independent AGM in its 167-year history in Zurich on Tuesday, after Swiss authorities brokered an “emergency rescue” in late March, when the bank’s share price tumbled and depositors fled en masse.

The board was angrily confronted on Tuesday by shareholders demanding answers and accountability for The deal is worth 3 billion Swiss francs ($3.3 billion)passed hastily over the course of a weekend and rejected a vote by both UBS and Credit Suisse shareholders.

Credit Suisse President Axel Lehmann said he was “really sorry” to shareholders, customers and employees, and suggested the bank’s turnaround plan follows years of losses, scandals and non-compliance was on track until turmoil in the US banking sector dented confidence.

The The Swiss Federal Prosecutor is investigating the state-backed takeover for possible violations of Swiss federal law by top government officials, regulators and executives.

Swiss regulator FINMA will hold a press conference at 7:30 a.m. London time on Wednesday.