After being hit by years of crisis that involved links to bankrupt funds and drug traffickers, Swiss bank Credit Suisse has been rescued by rival UBS from the brink of collapse. The acquisition was completed for $3.2 billion, which is 60 per cent lower than Credit Suisse's market value on Friday, and has pinched its Saudi investors who lost $1 billion.
Although the crisis seems to have been contained, thousands of Credit Suisse employees in India risk losing their job as a fallout.
Tough calls on the cards for UBS
The second largest Swiss bank has a 14,000-strong workforce in India, and a huge chunk of it will be slashed off if UBS rationalises roles to cut costs.
Both Credit Suisse and UBS have 7,000 of their own employees divided between tech centres in three different cities.
As the top Swiss lender won't need such a large workforce, there's a possibility of layoffs on the horizon.
There's still hope with a big 'if'
But the remaining 7,000 Credit Suisse employees in banking may benefit if UBS decides to make the most of the former's wealth management and brokerage services in India.
UBS has limited banking activity of its own in India, and doesn't have any branch since 2013, may either retain Credit Suisse's premises in India or shut it down.
The option UBS picks will decide the fate of thousands of Credit Suisse staffers in India.
Multiple stakeholders stung
Another group that has been burnt by the Credit Suisse bailout, are AT1 bondholders, as the instruments worth $17 billion will be written off.
As shareholders are set to get a payout as part of the deal, bondholders are angry that their assets are worthless.
Theirs is a conundrum similar to that of Yes Bank's AT1 bondholders, who are fighting against their Rs 8,500 crore investment being written off.
