While there are many aspects of this potential merger to digest, one fact stood out to me: UBS has a balance sheet of $1.1tn, and Credit Suisse has a balance sheet of $530bn, if they merge this will create a giant managing $1.6tn, which is 200% of Switzerland’s $800bn GDP.
That’s an astounding statistic, and I wonder which regulator would want to handle such a situation within their borders. On the other hand, if the merger is blocked they could be responsible for a dramatic and highly consequential collapse in the banking system - not an envious position.