UBS has proposed a settlement with the victims of the Greensill collapse that helped sink rival Credit Suisse and spark a merger of the Swiss banks to save it from going under.
Former Credit Suisse customers have been offered 90% of the funds they invested in failed trade factoring business Greensill, which Credit Suisse was providing with funds.
Greensill consolidated chunks of its factored loans and sold them, to outside investors via a Credit Suisse fund, who bought a share in the loans.
Although these loans were backed by insurance, the business collapsed when lead insurer Tokio Marine pulled its cover.
UBS said the offer would remain open until July 31 with a provision of US$900 million (£710 million) to be taken in the second quarter to cover the cost.
The bank said the payment would not impact its business, which has rebounded strongly since the acquisition of Credit Suisse helped by the strength of some of the divisions it took over.
UBS said its offer “aims to give fund investors certainty, an accelerated exit from their positions and a high level of financial recovery”.
“It will allow an early exit from fund investments compared to distributions under the ongoing recovery process,” it added.