Weekly Global News Wrap: UBS to retain only few Credit Suisse senior bankers; open banking to increase liquidity risk

And the UK must make it easier for banking staff to work remotely, says industry body. 

From Reuters:
Only a very small number of Credit Suisse senior bankers– particularly those with strong client relationships– will be retained by UBS Group following its takeover of the Swiss bank, sources familiar with talks told Reuters.

UBS bankers over recent weeks have been meeting with their counterparts at Credit Suisse to move quickly on potential new jobs once the merger is completed, four sources with knowledge of the talks said.

One source described early discussions as “brutal.” Formal interviews will reportedly take place once the deal is completed, two sources shared.

UBS and Credit Suisse declined to comment.

ALSO READ: UBS buys Credit Suisse in “emergency rescue”

From Reuters:
Open banking in the US could increase liquidity risk of retail deposits for banks, said acting Comptroller of the Currency Michael Hsu in prepared remarks.

Open banking describes the process of banks and other traditional financial institutions giving customers and third parties easy digital access to their financial data.

This could impact how regulators supervise banks, as seamless account portability between financial institutions could lead to increased deposit outflows, Hsu said.

The Consumer Financial Protection Bureau is expected to propose a rule in 2023 requiring financial institutions that offer transaction accounts to set up secure methods for data sharing.

From Reuters:
The UK must make it easier for staff based overseas to work remotely in London as the UK capital falls further behind New York on the global financial services ranking list, sector lobby group TheCityUK said in a report.

Britain's leading role in financial services investment faces challenges from three continents, with Singapore, France, and Germany catching up. 

Drivers of investment are moving beyond the "low tax, low regulation" trope to include open trade, proximity to tech providers and good quality infrastructure, said the report.