Credit Suisse tells staff to keep working and that salary and bonus will be paid ‘as previously communicated’ after UBS takeover deal: reports

• UBS sealed a deal to accumulate Credit Suisse for $3.25 billion on Sunday after a disaster of confidence.
• Credit Suisse assured employees they’ll nonetheless get be getting bonuses as scheduled, Bloomberg reported. 
• Credit Suisse is also urging employees to “continue to work as normal.”

Credit Suisse has told employees that they’ll nonetheless be getting their bonuses and that employees should proceed to work “as normal,” numerous information shops reported Monday, citing two inside memos issued after UBS sealed a deal to accumulate the 167-year-old lender.

“There are no changes to payroll arrangements,” Credit Suisse wrote in a Q&A addressing issues employees might have, per Bloomberg. “We will pay salary and bonus, where outstanding, as per the previously communicated schedule.”

Employees’ salaries and any bonuses which are due will nonetheless be paid on March 24, per the memo.

Credit Suisse also assured employees they’ll nonetheless be paid bonuses for their work in 2023, in line with the memo. The financial institution’s merger with UBS is ready to shut by the end of 2023.

The merger — which was brokered by the Swiss government — got here after Credit Suisse’s share price slumped last week amid jitters in the banking sector over the collapse of Silicon Valley Bank, Signature Bank, New York, and Silvergate Bank earlier this month. This put strain on Credit Suisse, whose outflows have already been accelerating over the past few months. 

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Investors worry the fallout from the US financial institution collapses may unfold and trigger a worldwide monetary disaster, and the share price of Credit Suisse — which had been battling scandals for years — has been already been under strain even before the present disaster. 

Meanwhile, the financial institution is also telling employees that their roles are “not immediately impacted” and that they need to “continue to work as normal,” per Bloomberg.

“We know that many of you will have been following the intense media coverage over the past 48 hours on the future of Credit Suisse and appreciate the enormous uncertainty and stress that this has caused,” Axel Lehmann, the chairman of Credit Suisse, and Ulrich Körner, the financial institution’s CEO, told employees in a separate memo, per Bloomberg.

But they added there’s no impact on the financial institution’s shoppers and day-to-day operations. “Our branches and global offices will remain open, and all colleagues are expected to and should continue to come to work,” they said, per the information outlet.

Credit Suisse’s share price closed 8% decrease at 1.86 Swiss francs apiece on Friday. They are down 34% to date this year.

Credit Suisse didn’t instantly reply to Insider’s request for remark.