Baker McKenzie advises UBS on the conclusion of a CHF 9 billion Loss Protection Agreement with the Swiss Confederation in the context of the merger with Credit Suisse

Baker McKenzie advised UBS Group AG ("UBS") on the conclusion of a Loss Protection Agreement (LPA) with the Swiss Confederation. The loss protection guarantee governed by the LPA is a cornerstone element of the merger between UBS and Credit Suisse and became effective with the completion of the merger of the two banks on 12 June 2023.

The LPA sets out the detailed terms of the guarantee authorised by the Swiss Federal Council's Ordinance of 16 March 2023. As part of the agreement, the Swiss government guarantees losses of up to CHF 9 billion if realised on a designated portfolio of Credit Suisse non-core assets once UBS bears the first CHF 5 billion of any realised losses.

Baker McKenzie Switzerland acted as sole legal advisor to UBS in connection with the LPA. 

Led by banking & finance partners Lukas Glanzmann and Markus Wolf, the Baker McKenzie core team included Sammy Guidoum (associate, banking & finance) and was supported by various colleagues from the tax, capital markets, financial services and dispute resolution teams.