Abstracts » Business

Cost cuts inspire record bank merger

Article Abstract:

Chemical Banking and Chase Manhattan are merging, and further mergers are likely in the US banking industry. US companies has an abundance of cash due to rising profits, and they can borrow cheaply due to low interest rates. Mergers and acquisitions have resulted, especially in banking. The two banks aim to save $1.5 billion annually due to the merger, and will shed some 12,000 jobs. Both banks have seen a rise in their share prices following the announcement. Chemical Banking has experience of a previous merger, and Chemical's management has more weight in the new board.

Chase Manhattan Bank N.A. (New York, New York), Chemical Banking Corp., CHL

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Swiss banks: merger talks in Zurich

Article Abstract:

Union Bank of Switzerland (UBS) and CS Holding have carried out merger talks. UBSis not seen as likely to accept a merger. The bank will hold a shareholders' meeting where Martin Ebner, rebel shareholder, will probably oppose the appointment of Robert Studer as chief executive, taking over from Nikolaus Senn. The Swiss authorities may not approve of the merger, even if it were agreed by the banks involved, and redundancies could cause problems since employment protection is strong in Switzerland.

Union Bank of Switzerland, CS Holding S.A.

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Bank earnings jump despite distractions

Article Abstract:

The Swiss banking industry has faced changes in 1996. Union Bank of Switzerland (UBS) has been affected by legal challenges from Martin Ebner, a shareholder. The major banks are competing in the investment banking market. They all seek to attract large, prestigious corporate clients. The three big Swiss banks have all embarked on restructuring programs and this reflects pressures in retail banking. The banks are also paying more attention to shareholder value.

Economic aspects, Switzerland

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