When two Swiss banks become one, hello, and you're listening to the Marketplace Morning

report live from the BBC World Service, I'm Leana Bern, a very good morning to you.

Throwback to the season of banking collapses. It's been more than five months since Swiss

Bank UBS, bought its rival Credit Suisse in a $3 billion government-backed bailout. The

banking giant had delayed its second quarter of the results, that's the first since that

takeover. And today, they finally released them. They're recorded at $29 billion pre-tax

profit. That's almost entirely thanks to the takeover. And at the same time, UBS says it

will press ahead with absorbing Credit Suisse's domestic business, which will result in thousands

of job cuts and branch closures. Banking analyst Francis Coppola explained what the implications

are to whip BBC's wheelbane.

There's an absolute massive headline profit of about $29 billion made up almost entirely

of what UBS didn't pay for Credit Suisse. It must be one of the best deals in history

this, because it's almost $29 billion of what we call negative goodwill, which is the

difference between what UBS actually paid for Credit Suisse and the book value of the

actual assets that they've purchased. They basically bought them at a whopping discount

and they put all of that through profit and loss, and it's turned up as the $29 billion.

Couple of controversial bits ahead though, aren't there? One, the decision that came in

the results that UBS would swallow up in its entirety, Credit Suisse's domestic bank,

politicians in Switzerland, been pretty critical of that.

Yeah, they're not going to be happy about that, because it does mean now that there will

eventually only be one very big Swiss bank in Switzerland, which is a worry for them

from an economic point of view, from a brand point of view, and from a competition point

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