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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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Entertainment

Eva Victor: The ‘superstar’ who rose to fame creating viral videos on why comparisons are ‘unhelpful’ and new film Sorry, Baby

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Eva Victor: The 'superstar' who rose to fame creating viral videos on why comparisons are 'unhelpful' and new film Sorry, Baby

The creator of a new movie about the aftermath of sexual assault says comparisons with stars including Phoebe Waller-Bridge and Michaela Coel are flattering, but “aren’t ultimately helpful”.

Eva Victor, who rose to fame after creating viral comedy videos on X, wrote and directed their debut feature – Sorry, Baby – as well as playing the lead role.

They were encouraged to both write and then direct the movie by Oscar-winning filmmaker Barry Jenkins, after he saw Victor’s videos online.

Eva Victor, who first gained attention for their viral comedy videos, has released their first feature, Sorry, Baby. Pic: A24
Image:
Eva Victor, who first gained attention for their viral comedy videos, has released their first feature, Sorry, Baby. Pic: A24

The film was warmly received at Sundance and Cannes, and its creator was hailed a “superstar”. But along with such accolades come inevitable comparisons.

Victor told Sky News: “The thing that that moved us so much about [Fleabag star Phoebe Waller-Bridge] and about Michaela Coel and about Greta Gerwig and those people is that it’s just a true voice.”

Phoebe Waller-Bridge in 2024. Pic: PA
Image:
Phoebe Waller-Bridge in 2024. Pic: PA

They admit “that part of the comparison means everything”, but go on: “I’m non-binary, so I use ‘they’ and ‘she’ pronouns and I think it’s interesting that we feel pretty binary about comparisons.

“People are pretty interested in putting me in a category of women. I mean, Denzel Washington directed himself. Albert Brooks directed himself. Jodie Foster directed after acting.

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“It’s an interesting conversation, and I think maybe comparisons aren’t ultimately so helpful. But also, I’m very honoured because they’re people I desperately look up to. Overall, it’s a very, very fine comparison.

Pic: A24
Image:
Pic: A24

‘The bad thing’ at the heart of the movie

A triple threat, Victor studied acting and playwriting at Northwestern University, Illinois, before moving to New York in 2016 where they worked on the feminist satirical website Reductress. They later landed a role in Showtime drama series Billions.

A black comedy, Sorry, Baby tells the story of Agnes, a twenty-something New England literature student – and later academic – who is sexually assaulted by her college tutor.

Dubbed “the bad thing” in the movie, the assault – which occurs off camera – is a catalyst for the movie’s storyline but never becomes its focus.

Victor has called the writing of the project, “my soul on the page” – without speaking directly about whether any real-life experience inspired it – telling Sky News: “The process you go through privately, you’re exercising something very soul-forward. It’s very exposing.”

The impact of sexual assault around the world is something Victor calls “a big, big societal tragedy”. One in four women in England and Wales experiences sexual assault in their lifetime, according to the Office for National Statistics.

Victor says: “The reason I made the film was to try to make a film about an attempt at healing and much less about a kind of violence.”

They explain: “As someone who wanted to explore the intimate feelings of recovery from something like this, the only way through for me was to really think about Agnes and what is truthful to her story.”

Pic: A24
Image:
Pic: A24

‘Less about violence, and more about love’

Several instances in the film show the system failing to effectively deal with or even fully acknowledge the abuse – first a hospital, then a university – and those scenes are handled with a lightness of touch not always applied to trauma-based stories.

Victor says: “Humour in those scenes is used as a way for punching up people in power. And these institutions that create a really difficult, painful time for people.”

In the current climate, as convicted sex offender Harvey Weinstein faces his third trial, and music star P Diddy awaits sentencing – where does Victor think the MeToo movement stands now?

Despite the movie’s themes, Victor is reticent to become a mouthpiece for the movement.

Measuring their words carefully, Victor offers a note of optimism in their answer – much like the message of the movie – looking to the future with hope, albeit in an imperfect world.

“I think there’s rehabilitation that is necessary for everyone, and I’m less interested in violence and punishment and much more interested in finding love and trying to hold each other.”

Sorry, Baby is in UK cinemas now.

Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK.

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Politics

Fast-track asylum appeals process to be introduced – as average time for decisions is more than one year

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Fast-track asylum appeals process to be introduced - as average time for decisions is more than one year

A new fast-track asylum appeals process will be introduced to speed up the process of deporting people without a right to remain in the UK, the home secretary has said.

As it currently takes, on average, more than a year to reach a decision on asylum appeals, the government plans to set up a new independent panel focused on asylum appeals to help reduce the backlog.

Home Secretary Yvette Cooper said “completely unacceptable” delays in the appeals process left failed asylum seekers in the system for years.

There are about 51,000 asylum appeals waiting to be heard.

The new independent body will use professionally-trained adjudicators, rather than relying on judges.

Ministers are introducing a new 24-week deadline for the first-tier tribunal to determine asylum appeals by those receiving accommodation support and appeals by foreign offenders.

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Police clash with protesters in Bristol

But they believe the current tribunal system, which covers a wide range of different cases, is still failing to ensure failed asylum seekers can be returned as swiftly as possible, nor can it accommodate a fast-track system for safe countries.

More on Asylum

It comes amid protests about the use of hotel accommodation for migrants.

The home secretary said the overhaul would result in a system which is “swift, fair and independent, with high standards in place”.

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She said: “We inherited an asylum system in complete chaos with a soaring backlog of asylum cases and a broken appeals system with thousands of people in the system for years on end.

“That is why we are taking practical steps to fix the foundations and restore control and order to the system.

“We are determined to substantially reduce the number of people in the asylum system as part of our plan to end asylum hotels.

“Already since the election, we have reduced the backlog of people waiting for initial decisions by 24% and increased failed asylum returns by 30%.

“But we cannot carry on with these completely unacceptable delays in appeals as a result of the system we have inherited which mean that failed asylum seekers stay in the system for years on end at huge cost to the taxpayer.”

Official figures released earlier this month showed a total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.

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US

Ghislaine Maxwell was given ‘platform to rewrite history’, say Virginia Giuffre’s family

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Ghislaine Maxwell was given 'platform to rewrite history', say Virginia Giuffre's family

The family of Virginia Giuffre, who was one of Jeffrey Epstein’s most prominent sex trafficking accusers, have said they are “outraged” over the US Department of Justice’s release of an interview with Ghislaine Maxwell.

Maxwell – a convicted sex trafficker and ex-girlfriend of the deceased paedophile financier Epstein – refuted several claims of child sex trafficking and abuse during the two-day-long interview with Deputy Attorney General Todd Blanche in July.

Reacting after the transcripts of the interview were released on Friday, Ms Giuffre’s family said it gave Maxwell the “platform to rewrite history” and showed she was “never challenged about her court-proven lies”.

“As the family of one of the most prominent survivors, Virginia Roberts Giuffre, we are outraged,” they said in a statement.

“The content of these transcripts is in direct contradiction with felon Ghislaine Maxwell’s conviction for child sex trafficking.”

Virginia Giuffre was one of Jeffrey Epstein's most prominent accusers. File pic: AP
Image:
Virginia Giuffre was one of Jeffrey Epstein’s most prominent accusers. File pic: AP

Ms Giuffre’s family added: “This travesty of justice entirely invalidates the experiences of the many brave survivors who put their safety, security, and lives on the line to ensure her conviction, including our sister.”

Referencing Maxwell’s move to a minimum-security facility in Texas earlier this month, they said it “sends a disturbing message that child sex trafficking is acceptable and will be rewarded”.

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“We continue to call upon the DOJ (Department of Justice) to do its job by investigating and holding accountable the many rich and powerful people who enabled Ghislaine Maxwell’s and Jeffrey Epstein’s crimes,” they concluded.

Ms Giuffre, who died by suicide in April, had previously claimed that Maxwell introduced her to Epstein and hired her as his masseuse, before she was sex trafficked and sexually abused by him and associates around the world.

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Virginia Giuffre dies by suicide

She sued Prince Andrew for sexual abuse in August 2021 – saying he had sex with her when she was 17 and had been trafficked by Epstein.

The duke has repeatedly denied the claims, and he has not been charged with any criminal offences.

In March 2022, it was announced Ms Giuffre and Andrew had reached an out-of-court settlement – believed to include a “substantial donation to Ms Giuffre’s charity in support of victims’ rights”.

During her interview with Mr Blanche last month, Maxwell said Ms Giuffre’s allegation against the duke “doesn’t hold water”, and denied ever introducing Epstein to him or Sarah Ferguson.

Prince Andrew and Virginia Roberts in 2001. Pic: Shutterstock
Image:
Prince Andrew and Virginia Roberts in 2001. Pic: Shutterstock

She insisted Epstein and Andrew met separately, and said “I think Sarah [Ferguson] is the one that pushed that”, before saying that allegations Andrew had sex with Ms Giuffre were untrue, as she was at her mother’s 80th birthday celebrations in the countryside outside the city.

Maxwell then claimed Ms Giuffre’s allegation that she and Andrew had sexual contact in the bathroom of her London flat was not true, as the room was not big enough.

She also claimed that an image of her standing alongside Andrew with his arm around Ms Giuffre’s waist was “literally a fake photo”.

During the interview with Mr Blanche, Maxwell denied ever seeing US President Donald Trump in an “inappropriate setting” and insisted she was not aware of any Epstein ‘client list’.

Read more:
All we know about Trump and Epstein’s ‘friendship’
Trump told in May his name appears in Epstein files – report
Virginia Giuffre wanted Epstein files released, her family say

Under growing pressure to release files related to Epstein, as he promised to do during his 2024 presidential campaign, Mr Trump has made a series of denials and claims about the paedophile financier.

In July, the president told reporters on Air Force One that Epstein “stole” Ms Giuffre and other young women from his Mar-a-Lago resort in Florida.

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Trump claims Epstein ‘stole’ Virginia Giuffre

Mr Trump has also floated a pardon for Maxwell, saying earlier this month that “nobody” had asked to but insisted that he has “the right to do it”.

“I’m allowed to do it, but nobody’s asked me to do it. I know nothing about it,” he added. “I don’t know anything about the case, but I know I have the right to do it.

“I have the right to give pardons, I’ve given pardons to people before, but nobody’s even asked me to do it.”

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Maxwell was sentenced in the US in June 2022 to 20 years in prison following her conviction on five counts of sex trafficking for luring young girls to massage rooms for Epstein to abuse. She has asked the US Supreme Court to overturn her conviction.

Epstein, 66, was found dead in his cell at a Manhattan federal jail in August 2019 as he awaited trial on sex trafficking charges. His death was ruled a suicide.

Read more from Sky News:
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His case has generated endless attention and conspiracy theories due to his and Maxwell’s links to famous people like royals, presidents and billionaires, including Mr Trump.

No one other than Epstein and Maxwell has been charged with any criminal offences.

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