UBS estimates a $13 billion negative impact from fair value adjustments to assets and liabilities following the merger. In addition, UBS expects to face $4 billion in potential litigation and regulatory costs. However, UBS estimates it will take a one-time gain of $34.8 billion in "negative goodwill" from buying Credit Suisse at a discount to book value. The funds will help absorb potential losses and could boost the lender's second-quarter profit after the deal is scheduled to close next month.
