Handelsblatt fears that the merger will exacerbate the issue:
“A powerful huge financial institution can take over weak small banks and restructure or wind them up. However when two weighty monetary establishments merge, one steady and one fragile, then – as we’ve seen repeatedly – the danger may be very excessive that what stays is a fragile monster. … Within the Swiss case, there may be additionally the truth that every of those banks on their very own – UBS and Credit score Suisse – are already too wieldy for comparatively small Switzerland, which makes it tough for the federal government and the central financial institution to offer credible assist. In opposition to this background, a mega-merger is something however a good suggestion.”
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