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The Swiss government is contemplating legislation that would require the country's biggest banks - UBS AG and Credit Suisse Group - to shed risky assets and improve their capital beyond international requirements to prevent future failures.

ABB Ltd. will pay a 41% premium on Baldor Electric Co.'s U.S. share price to buy the maker of energy-efficient engines for $4.2 billion, including $1.1 billion of Baldor's debt. ABB expects energy regulations in the U.S. and other industrialized countries to drive up demand for energy-efficient industrial motors.

Boosted by a tax credit, UBS AG swung to a third-quarter profit of 1.66 billion Swiss francs, compared with a loss of 564 million francs a year earlier. The bank said its private-banking operations received 900 million Swiss francs in new investments, reversing a two-year outflow of funds.

Affected by sagging business in its securities unit, Credit Suisse Group's third-quarter profit plummeted 74% to 609 million Swiss francs from 2.35 billion francs a year earlier. Separately, U.S. regional bank Fifth Third Bancshares Inc. swung to a third-quarter profit of $238 million from a loss of $97 million a year ago, while Huntington Bancshares Inc. reported profit of $101 million compared with a loss of $166 million last year.

Credit Suisse Group AG and UBS AG would be required to drop risky assets and hold a larger portion of better-quality capital under an expert-led proposal to protect Switzerland's economy and prevent another bank bailout. The banks would be required to hold a minimum of 19% in total capital, with 10% in common equity. The current Basel III reforms require only 10.5% total capital and 7% common equity.

Swiss bank UBS AG will begin returning profits to shareholders once bank reforms are implemented in 2013. The bank also plans to significantly cut back higher-risk assets, which will almost double once they are categorized by the new rules. UBS has not returned shareholder profits since 2007; the government helped bolster the bank in 2008.

Possibly resulting in a stronger push for an IPO, pharmaceutical firm Nycomed SCA received approval from European regulators for its drug Daxas to treat smoker's lung. Nycomed has 4 billion euro in senior debt and 8 million euro in assets.

Engineering firm ABB Ltd. has launched a bid of 860 million pounds sterling for Chloride Group PLC, maker of power-surge-protection systems. Two months ago, Emerson Electric tried unsuccessfully to acquire Chloride for 723 million pounds. The new ABB bid may trigger a bidding war with Emerson.

Boosted by a 3.8% cut in operating expenses, Credit Suisse Group AG's first-quarter profit inched up 2.4% to 2.06 billion Swiss francs. Revenue rose 11% to 9.01 billion francs from 8.11 billion francs. Revenue from investment banking fell 19% to 5.22 billion francs, while private-banking revenue rose 1% to 2.9 billion. Tier 1 ratio was 11.3% at the end of March compared with 11.2% at the end of December.

At UBS AG's annual general meeting, UBS will ask shareholders to absolve former managers Marcel Ospel and Peter Wuffli from potential responsibility for bad investments that resulted in billions of dollars in write-downs and charges. The vote is largely a formality and has no immediate legal consequences. Shareholders oppose the discharge.

It is reported that UK bank Barclays PLC, through its investment arm Barclays Capital, is looking to hire traders to handle its planned Swiss-franc-trading operations in Switzerland.

In late 2008, Credit Suisse Group set up a pool of illiquid assets comprised mostly of mortgage-backed securities. In January 2009, Credit Suisse announced it would use the shares in the pool as bonus pay for its investment bankers. The pool had a 72% return last year, but Credit Suisse's bankers won't be able to cash in on their bonuses until 2014.

ABB Ltd. expects to report an increase of about 7.9% in third-quarter net income to $1 billion from $927 million a year earlier. ABB was fined 33.8 million euro by the European Union for participating in a price-fixing cartel.

Credit Suisse Group plans to expand its private-banking unit by adding 600 private bankers to its workforce of 3,400 bankers, raising new-client funds by 6%, and increasing gross profit margin from 1.1 to 1.2 points. In the second quarter, Credit Suisse's private-banking assets rose by $10.36 billion.

Despite improving its finances and boosting its Tier 1 capital ratio to 13.2%, UBS AG's second-quarter net loss widened to 1.4 billion Swiss francs from a net loss of 395 million francs a year earlier. UBS suffered outflows of 17.1 billion francs at its global asset-management business, 5.8 billion francs at its U.S. wealth-management unit, and 16.5 billion francs at its Swiss wealth-management division. By year's end, UBS expects the Swiss government to sell its 9.3% stake in the bank.

Credit Suisse Group reports a 29% second-quarter net profit increase to 1.57 billion Swiss francs from 1.22 billion francs a year earlier. Article discusses the banking group's financial standing, share value, and earnings outlook for the rest of 2009.

UBS AG's chief executive, Oswald Grubel, says that his company expects to post a first-quarter net loss of nearly two billion Swiss francs. Mr. Gruber also announced plans to lay off 8,700 workers, and reduce operating costs by 15% amounting to between 3.5 billion francs and four billion francs in savings.

Julius Baer Holding AG plans to cut operating expenses by between 10% and 15% which will result in estimated savings of 279 million Swiss francs in 2009. The cost cuts will include job losses at the bank's private-banking unit. Without disclosing terms, Julius Baer also announced it will buy back investment firm Augustus Asset Management Ltd.

At its annual shareholder meeting on April 24, Credit Suisse Group will ask investors to approve a rights issue of as many as 100 million new shares, which could translate into a capital increase of 3.6 billion Swiss francs. The company reported a net loss of 8.22 billion francs in 2008. Article discuss Credit Suisse's executive bonuses, and expected earnings in 2009.

Increasing an already-record loss, UBS AG raised its 2008 net loss by 1.19 billion Swiss francs to 20.89 billion francs because of $780 million needed to settle a tax-fraud investigation in the U.S. and 300 million francs in write-downs from illiquid assets. Article discusses UBS's cost-reduction plans and earnings forecast for 2009.

Bogged down by 4.2 billion Swiss francs in charges, UBS AG reports a larger-than-expected fourth-quarter net loss of 8.1 billion francs. The bank's losses totaled 19.7 billion francs in full year 2008. UBS announced plans to eliminate more than 2,000 jobs, reduce bonuses, and refocus its investment-banking unit from international markets to its home market.

Chemicals manufacturer Clariant AG reports a 5% full-year drop in sales to 8.1 billion Swiss francs. To shore up its finances and reduce costs, the company announced it will cut a further 1,000 jobs -besides the 2,200 already announced-, and cancel dividend pay-outs for 2008.

Aberdeen Asset Management PLC's announcement that it would buy some mutual fund operations from Credit Suisse Group AG in an all-share deal worth about 250 million pounds sterling caused Aberdeen's share to close up 15% at 119.5 pence, and Credit Suisse's shares to rise 2.2% to 28.50 Swiss francs. Credit Swiss will gain a 24.97% stake in Aberdeen when the deal closes by the end of June.

Having reported losses in its past four quarters, Swiss banking giant UBS AG expects a small profit for its fiscal third quarter after reducing its U.S. residential and commercial mortgage portfolio. It is estimated that UBS has reduced its mortgage market exposure by more that 70% to $24 billion from $92.1 billion since the beginning of the year. The company continues to realign its operations and cut costs. UBS's stock rose 8.1% to $18.91.

In an effort to decrease risk and improve profitability in a global credit market crisis, financial giant UBS AG plans to separate its investment-banking, and private-banking units. UBS will cut its investment-banking unit's access to low-cost funding while making the unit's executives' compensation dependant on the bank's performance. It is speculated that UBS may eventually spin-off or sell its investment bank. On Tuesday, UBS reported a loss of $329.3 million for its second quarter.

Financial giant UBS AG is expected to undergo organizational changes as the company prepares to report second-quarter results on Tuesday. The changes are likely to include the sale of UBS's money-management and brokerage unit in the U.S., and investment bank. UBS's bad investment write-downs could reach $43 billion. In a settlement with U.S. authorities, UBS will also buy back $19 billion in auction-rate securities following allegations of securities fraud. Also, UBS private bankers are being investigated by U.S. authorities for allegedly helping clients evade taxes.

UBS AG's new chairman, Peter Kurer, announces executive board changes which include appointing independent directors, and streamlining the board's decision-making process. Article discusses UBS's recent losses stemming from the global credit crisis, financial standing, stock value, shareholder relations, and tax-evasion probe by U.S. authorities.

UBS AG and UK investment firm Olivant Advisers Ltd. have met regarding changes Olivant is seeking for UBS. Olivant has a 1.1% stake in the Swiss bank. Changes include dividing the company's investment banking and private banking businesses.

In a letter to financial giant UBS AG, investor and former bank president Luqman Arnold urges the company to break up its investment and private banking branches, and sell the investment bank and asset management business to raise funds in a troubled capital market. Article discusses the bank's recent $37.7 billion losses, stock value, relations with investors, and possible reorganization.

Qatar's sovereign wealth fund has accumulated holdings in Credit Suisse Group, as part of a plan to purchase $15 bil-worth of Western banking stocks in 2008. The holdings are below the 3% level that would require Qatar to disclose its stake in the bank.

Fourth-quarter net loss for Swiss bank UBS AG totaled $11.23 bil, including a write-down of $13.7 bil on investments linked to US subprime mortgages. This is UBS's first full-year net loss since 1997. Ethos, a Swiss activist shareholder, has called for the firm to examine a replacement for Marcel Ospel, who has significant operational influence as chairman.

Byline: CARRICK MOLLENKAMP ALISTAIR MACDONALD AND KATHARINA BART In Jerker M. Johansson, Swiss bank UBS AG has found a strong, reliable pair of hands to manage its investment bank. But [...]

Second-half net profit for Swiss bank Julius Baer Holding AG rose 33% to reach 618.6 mil Swiss francs, while its stock increased 2.9% to reach 74.20 francs. The firm's performance exceeded analyst expectations.

Byline: RICK CAREW, MARCUS WALKER, CHIP CUMMINS, AND KATHARINA BART; Zhou Yang in Beijing contributed to this article HONG KONG, BERLIN, DUBAI, BRUSSELS -- The powerful government-run investment funds of [...]

The European Commission announced new emission reduction standards for the automobile industry aimed at decreasing carbon dioxide emissions from vehicles by 25%. Limits are based on vehicle weight. Sizeable penalties will be phased in starting in 2012 for manufacturers that do not meet the Commission's targets.

Several international freight forwarding companies are being investigated by the European Commission and US and Swiss authorities for price-fixing, including Swiss firms Panalpina World Transport Ltd. and Kuehne and Nagel International AG, and US firm Expeditors International of Washington Inc.

The European Union has approved Novartis AG's anti-diabetes drug Galvus, a DPP-4 inhibitor for treating Type 2 diabetes. However, the drug faces a delay in the US, as the Food and Drug Administration has requested more clinical reports.

Swiss employment services company Adecco S.A. will purchase the German temporary staffing firm Tuja Group for $802.8 mil to strengthen its presence in that country. The deal includes assumption of Tuja's debt.

First-quarter net profit for Credit Suisse Group increased by 5% to reach $2.25 bil, driven by wealthy client commissions and strong trading bonds and stocks markets. Total revenue increased by 6.4%, while fees and commissions from the firm's private banking arm rose 18%.

The German Federal Cartel Office has placed a block on Phonak AG's plans to purchase ReSound from GN Store Nord A/S, expressing concerns that the $2.7 bil deal would make Phonak part of an oligopoly for hearing aids in the region.

UBS AG of Switzerland posted a 47 percent fall in net profit for the fourth quarter to 3.41 billion Swiss Francs ($2.73 billion) from 6.49 billion Francs last year. Revenues for last year were increased due to asset divestments. UBS AG is the second largest bank in Europe.

Credit Suisse Group is reporting a 1.4% drop in third-quarter net profits, but says it still expects a record full-year profit. Lower equity-trading revenues and a slowdown in private banking affected profits . Credit Suisse's net profit goal for next year is 8.2 billion francs.

Chief Executive Officer Thomas Matter, Swissfirst AG of Switzerland has resigned amidst an investigation of a 2005 Bellevue merger. Mr. Matter retains an 18.5 percent stake in the Swiss banking interest and maintains the merger was above board. Shares dropped by 25 percent at the news yet rose yesterday by 1.4 percent to 75 Swiss Francs ($60.51) on the Zurich stock exchange.

UBS AG of Switzerland posted stellar second quarter net profit increases by 47 percent to 3.15 billion Swiss Francs ($2.54 billion) from 2.15 billion Francs last year. Strong revenues for the banking giant were due to conservative business practice in a slowing market.

AXA Group of France is to purchase the Winterthur Insurance Co. of Switzerland for 12.3 billion Swiss Francs ($9.9 billion). The deal is being financed with a stock float of 4.8 billion Euros ($6 billion). The move would give AXA Group greater market share in Switzerland and international markets.

Deutsche Bank AG of Germany net profit soared for the first quarter by 55 percent to 1.71 billion Euros ($2.16 billion) from 1.1 billion Euros last year. Revenues were driven by positive market conditions for its investment-banking business.

Credit Suisse of Switzerland posted soaring first quarter net profit increase by 36 percent to 2.6 billion Swiss Francs ($2.1 billion) from 1.91 billion Francs last year. Revenue growth was due to increased private-banking and investment-banking business.

Chief Executive Officer Jens Alder, Swisscom AG of Switzerland has resigned after a heated debate with the Swiss government that has blocked the telecommunications companies expansion plans. Mr. Alder is to be succeeded by Carsten Schloter. The Swiss government currently owns 62 percent of the telecommunications concern which is to be privatized.

Credit Suisse Group of Switzerland posted net profit earnings jump of 42 percent during the third quarter due to stellar performance by its investment bank, Credit Suisse First Boston as well as private-equity banking operations. The profit margin rose to $1.92 billion Swiss Francs ($1.49 billion).

UBS AG is to merge its private banking operations with Sauerborn Trust AG in its home country of Germany. Sauerborn Trust specializes in providing asset management advice to high-net-worth clients. The purchase marks a significant step forward for UBS in its strategy to increase its presence in key European countries.