What The Papers Say: Merger makes holes in Swiss reputations

While stories of huge City bonuses are always headline-makers, the news of a few thousand redundancies due the merger of the Swiss Bank Corporation and the Union Bank of Switzerland into the newly-created United Bank of Switzerland (UBS), should have been no more than a commonplace fact of corporate life in the 1990s.

While stories of huge City bonuses are always headline-makers, the

news of a few thousand redundancies due the merger of the Swiss Bank

Corporation and the Union Bank of Switzerland into the newly-created

United Bank of Switzerland (UBS), should have been no more than a

commonplace fact of corporate life in the 1990s.



However, the new bank’s London-based investment banking division,

Warburg Dillon Read, has found it necessary to appoint Lowe Bell

Financial to prevent damage to its reputation in light of unfavourable

reports about job losses. One of Lowe Bell’s first tasks may be to

establish how this became a ’story’ in the first place. Various

publications alleged clumsy handling and a redundancy policy at odds

with the platitudes about meritocracy in the original merger

announcements.



Swiss banks, which owe so much to their reputation for confidentiality,

will want their dirty linen washed as soon as possible, but the story

could spread with the dispersal of the former Union Bank personnel to

rival banks.



Evaluation and analysis by CARMA International. Cuttings supplied by The

Broadcast Monitoring Company. ’What The Papers Say’ can be found at:

www.carma.com.



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