Federal Reserve Board announces its approval for UBS Group AG to acquire the U.S. subsidiaries of Credit Suisse Group AG

The Board of Governors of the Federal Reserve System (FED) has published a press release to inform that it has approved the acquisition of the U.S. subsidiaries of Credit Suisse Group AG by UBS AG. Specifically, the FED approved the purchase of all voting shares of Credit Suisse Holdings (USA), Inc. (CSHUSA). This approval is required for companies exceeding certain thresholds.
Additionally, the FED has permitted UBS to „maintain two U.S. intermediate holding companies for a period of one year“ after the date that UBS purchases CSHUSA. After one year, the intermediate holding companies must be consolidated into one or UBS must seek an alternative organizational structure which will require prior FED approval.
Furthermore, so the FED, will UBS be required to submit a consolidation plan for merging the two companies. This plan must be updated quarterly and must „address UBS’s obligations to comply with more stringent enhanced prudential standards, including liquidity standards“.