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UBS Group AG expects a financial hit of about $17 billion from the takeover of Credit Suisse Group AG, the bank said in a regulatory presentation as it prepares to complete the rescue of its struggling Swiss rival.

UBS estimates a negative impact of $13 billion from fair value adjustments of the combined group’s assets and liabilities.

It also sees $4 billion in potential litigation and regulatory costs stemming from outflows.

UBS, however, also estimated it would book a one-off gain stemming from the so-called “negative goodwill” of $34.8 billion by buying Credit Suisse for a fraction of its book value.

The financial cushion will help absorb potential losses and could result in a boost to the lender’s second-quarter profit if UBS closes the transaction next month as planned.

UBS said the estimates were preliminary and the numbers could change materially later on.

It also said it might book restructuring provisions after that, but offered no numbers. Union Bank of Switzerland said it estimates a negative impact of $13 billion from fair value adjustments of the combined group’s assets and liabilities. AFP via Getty Images

“The financial information lacks an estimate of restructuring provisions as these will be booked after the transaction closes,” Vontobel analyst Andreas Venditti said in a note.

Analysts at Jefferies have estimated restructuring costs, litigation provisions and the planned winding down of the non-core unit could total $28 billion.

Meanwhile, UBS has implemented a number of restrictions on Credit Suisse while the takeover is underway.

In certain cases, Credit Suisse cannot grant a new credit facility or credit line exceeding $113 million to investment-grade borrowers or more than 50 million francs to non-investment-grade borrowers, a UBS filing showed. Union Bank of Switzerland implemented a number of restrictions on Credit Suisse while the takeover is underway.Getty Images

“Credit Suisse obviously found itself in a problem because of lapses in its risk controls and I think just setting these parameters on the ability or standards to lend out is not very unreasonable,” said Benjamin Quinlan, Hong Kong-based chief executive of financial consultancy firm Quinlan & Associates

“Ultimately, from UBS’ perspective, they will have to wear these risks on their books.”

Credit Suisse also cannot undertake capital expenses of more than 10 million francs as part of the restrictions or enter into certain contracts worth more than 3 million francs per year.

The filing shows Credit Suisse cannot order any “material amendments” to its employee terms and conditions, including remuneration and pension entitlements, till deal closure.

The restrictions “will cause certain clients to leave Credit Suisse” but may not accelerate the pace of outflows already seen, said Quinlan, following UBS’ statement last week that Credit Suisse had already stemmed asset outflows. RUSHED INTO DEAL

UBS said it was rushed into the deal and had less than four days to complete due diligence given the ’emergency circumstances’ as Credit Suisse’s financial health worsened. The filing shows Credit Suisse cannot order any “material amendments” to its employee terms and conditions. AFP via Getty Images

UBS agreed in March to buy Credit Suisse for $3.4 billion in stock and to assume up to 5 billion francs in losses that would stem from winding down part of the business, in a shotgun merger engineered by Swiss authorities over a weekend amid a global banking turmoil. Start your day with all you need to know

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The deal, the first rescue of a global bank since the 2008 financial crisis, will create a wealth manager with more than $5 trillion in invested assets and over 120,000 employees globally.

The Swiss state is backing the deal with up to 250 billion Swiss francs in public funds.

Switzerland’s government is providing a guarantee of up to 9 billion francs for further potential losses on a clearly defined part of Credit Suisse portfolio.

UBS signaled no quick turnaround for the 167-year-old Credit Suisse, which came to the brink of collapse during the recent banking sector turmoil after years of scandals and losses.

It said it expected both the Credit Suisse group and its investment bank to report substantial pre-tax losses in the second quarter and the whole of this year.

Following the legal closing of the transaction, UBS Group AG plans to manage two separate parent companies UBS AG and Credit Suisse AG, UBS said last week.

It has said the integration process could take three to four years.

During that time, each institution will continue to have its own subsidiaries and branches, serve its clients and deal with counter-parties.

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Horns’ Ewers leads ‘new era’ of college football

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Horns' Ewers leads 'new era' of college football

ARLINGTON, Texas — Texas coach Steve Sarkisian said Thursday that quarterback Quinn Ewers, with the emergence of name, image and likeness and the transfer portal, has become the face of this “new era of college football.”

Ewers initially committed to Texas, but he then opted to skip his senior year of high school and reclassify to the 2021 recruiting class before enrolling a year early and joining Ohio State during preseason practice.

Still the nation’s No. 1 ranked overall prospect, Ewers landed one of the first marquee NIL deals worth $1.4 million.

Ewers, who lasted one season with the Buckeyes before transferring to Texas, will square off against Ohio State on Friday night in the Goodyear Cotton Bowl with a trip to the College Football Playoff national championship on the line.

“It’s not been an easy journey for him,” Sarkisian said Thursday. “There’s been ups, there’s been downs, there’s been injuries, there’s been great moments, there’s been tough moments. … But at the end of the day, he’s always stayed true to who he is. The guy’s been a steady sea for us.”

Ewers has been making college football headlines since Ohio State offered him a scholarship when he was just in middle school. This week, Buckeyes coach Ryan Day recalled meeting Ewers for the first time when he was an eighth-grader visiting a Buckeyes football camp.

“He was a boy at the time really, who just had a tremendous release,” Day recalled. “And I remember grabbing him and grabbing his dad and said, ‘Man, you got a bright future ahead of you. I don’t know if this is good or bad, but we’re going to offer you a scholarship to Ohio State.'”

C.J. Stroud, who has since led the Houston Texans to the NFL playoffs, emerged as a star quarterback for the Buckeyes then, prompting Ewers to transfer to Texas.

“Boy, it was strange how it all shook out,” Day said. “He decided he really wanted to play. And it was disappointing for us, but we certainly understood. From afar I’ve watched him. He’s a really good player. He comes from a great family, and he’s had a great career at Texas and a lot of people here still have good relationships with him and think the world of him.”

At Texas, Ewers has started in 27 wins and led the Longhorns to back-to-back playoff appearances. This season, he has thrown for 3,189 yards and 29 touchdowns with 11 interceptions.

Ewers noted that the “coolest part” of the NIL era is being able to provide for his parents. He has even hired his mom, making her CFO of his finances while giving her a salary.

“Which is nice just because all the effort and work they put into me growing up,” he said. “I mean, when we were living in South Texas, they both quit their jobs and moved up to Southlake [to support Ewers’ budding athletic career].”

Whatever happens in the playoff — whether it be a loss Friday or a national championship victory against the winner of Notre DamePenn State on Jan. 20 — Ewers’ career at Texas figures to be coming to a close.

Though Ewers still has one season of eligibility remaining, blue-chip quarterback prospect Arch Manning appears primed to finally take over in Austin next season.

Manning, the nephew of NFL quarterback greats Peyton and Eli Manning, who could become the No. 1 overall prospect for the 2026 NFL draft, has backed up Ewers for two seasons waiting for his opportunity. Sarkisian even momentarily benched Ewers in favor of Manning during Texas’ 30-15 loss to Georgia on Oct. 19.

Still, Ewers figures to have options.

ESPN football analyst Mel Kiper Jr. ranks him as the No. 6 quarterback prospect eligible for the upcoming draft. Rumors have also emerged recently that Ewers could put off the NFL for another year and transfer to a third school for millions more in NIL money.

Amid those distractions, Ewers has thrived in the playoff bouncing back from oblique and ankle injuries from earlier in the year to complete 69% of his passes with four touchdowns in Texas’ two victories.

In the Chick-fil-A Peach Bowl quarterfinal, Ewers tossed 29- and 25-yard touchdown passes in the overtimes, lifting Texas to the 39-31 win over Arizona State.

“I’ve just been proud of him,” Sarkisian said, “because he’s found a source for him that has been a motivating factor, where he can play free and play loose and play confident.”

Ewers added that, whatever the future holds, even contemplating it now would be “selfish,” with a national title still in reach for him and the Longhorns.

“I owe my teammates the best version of me right now,” he said. “I can’t be looking forward or I’ll trip on the rock that’s sitting right in front of me. I’ve got to be locked in on what’s right here.”

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Texas RT Williams back in lineup for CFP semi

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Texas RT Williams back in lineup for CFP semi

ARLINGTON, Texas — Texas starting right tackle Cameron Williams will return for the College Football Playoff semifinal against Ohio State on Friday, Longhorns coach Steve Sarkisian said Thursday.

Williams suffered a right knee sprain in the playoff opener against Clemson. The injury forced him to miss Texas’ quarterfinal overtime victory over Arizona State.

A junior, Williams has played in 37 games in his career with 16 starts for the Longhorns. Williams is rated as the No. 28 overall prospect and fifth offensive tackle in ESPN’s NFL draft rankings.

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Sources: Georgia QB Beck enters transfer portal

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Sources: Georgia QB Beck enters transfer portal

Georgia quarterback Carson Beck has entered the NCAA transfer portal, sources confirmed to ESPN on Thursday.

Beck had declared for the NFL draft on Dec. 28 but is now reversing course and will explore a transfer.

Sources told ESPN that Miami looms as the favorite for Beck and the timeline for his decision is expected to play out within a week.

While Miami is the favorite for Beck, a source said Beck’s camp intends to listen to all potential suitors for the best situation: “It’s a strategic thing, not an emotional thing,” the source said.

Beck, a two-year starter at Georgia, is currently recovering from surgery to repair the ulnar collateral ligament in his throwing elbow after suffering the injury during the Bulldogs’ SEC championship victory over Texas.

Beck will not be able to throw until March, sources told ESPN, which would have complicated his NFL draft process and will likely force him to miss spring practice at his next school. Sources said the variety of feedback he got from the draft process led to this decision, as he changed his mind in the past 24 hours. He received advice that if he could return and wanted to, he should probably return and play another season in college.

A source said Beck received feedback that he could end up anywhere between the first and third round, with much of that uncertainty due to the fact that he would not be able to throw for a team in predraft workouts.

Despite that injury setback, Beck will immediately become the most coveted quarterback available as a late entry to the transfer market. While Miami looms as the favorite, there are other big brand teams that could jump out as suitors including Texas Tech and Notre Dame.

The 6-foot-4, 220-pound senior went 24-3 as the Bulldogs’ starter and was viewed as a potential No. 1 draft pick entering the 2024 season. He threw for 3,485 yards with 28 touchdowns and 12 interceptions this season and led Georgia back to the SEC title game.

Beck injured his elbow on the final play of the first half against Texas on Dec. 7. Renowned orthopedic surgeon Dr. Neal ElAttrache performed Beck’s surgery on Dec. 23 in Los Angeles.

“He wants to win,” said the source close to Beck. “He didn’t come back to get knocked out at halftime of a conference championship.”

Entering his fifth college season, Beck was viewed as a potential top-10 draft pick. ESPN’s Mel Kiper Jr. currently considers Beck the No. 5 quarterback in his draft rankings.

Miami has not added a transfer quarterback this offseason to succeed Cam Ward, the potential No. 1 pick. They’ve quietly been canvassing the transfer market in recent weeks, per sources, as they have been set on bringing in a front-line starter who can produce immediately, much like Ward did.

Ward made a similar decision last January, initially declaring for the NFL draft but changing his mind and transferring to join the Hurricanes after he was unsatisfied with his draft feedback. Ward finished fourth in Heisman Trophy voting in his lone season in the program after producing 4,313 passing yards and 43 total touchdowns.

On3 first reported Beck’s intentions to enter the portal.

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