The New UBS Is a Wealth Management Behemoth. That’s a Risk.

UBS Group

lightning rescue of

Credit Suisse Group

is, at its core, about wealth management. Both UBS and Credit Suisse have Swiss retail banks and global investment banks. Credit Suisse’s investment bank has had a brilliant, if rocky, history. UBS was a top wealth manager before the deal and, with Credit Suisse, will have more than $3.4 trillion in wealth management assets, just behind

Morgan Stanley

That’s the good news and the bad news. UBS says its strategy is unchanged, and the addition of Credit Suisse will enhance its ability to serve clients globally. “The deal is likely to be value-enhancing for UBS and its shareholders, given the steeply discounted price and the downside protection,” says CFRA Research analyst Firdaus Ibrahim.