UBS Cites $17B Hit From Rushed Credit Suisse Takeover, Blames Hasty Due Diligence

UBS Group AG UBS said it expects a financial hit of $17 billion from the acquisition of Credit Suisse Group AG CS in a regulatory filing issued yesterday.
The Swiss banking giant commented it was rushed into the emergency takeover by Swiss governmental authorities, which may have affected its "ability to fully evaluate Credit Suisse's assets and liabilities."
Also Read: UBS Acquisition of Credit Suisse: Bye Bye AT1 Investors, Anxiety Builds Among Banks' Subordinated Bondholders
In particular, UBS expects a negative impact of around $13 billion from fair value adjustments of the new combined entity's assets and liabilities and litigation and regulatory costs expenses of about $4 billion, CNBC reported.
Also, UBS projects a one-off negative goodwill gain of $34.8 billion from the acquisition.
Last week, UBS CEO Sergio Ermotti shared his thoughts on troubled Credit Suisse, saying that the latter bank has stabilized and that he did not think outflows at the embattled bank were continuing.
Also related: Credit Suisse Reports CHF 61.2B Withdrawal In Final Quarterly Earnings Ahead Of UBS Takeover
Price Action: UBS shares are trading higher by 0.31% at $19.16 premarket on last check Wednesday.