Swiss taxpayers will not fund UBS Group's (NYSE:UBS) rescue of Credit Suisse (NYSE:CS).
The bank, which has faced a political backlash against the deal, inked a loss protection agreement with the Swiss government, effective post-completion of the acquisition of Credit Suisse.

UBS will handle potential losses of the first CHF 5 billion, and if the amount exceeds, the Swiss government will cover losses of the next CHF 9 billion related to the emergency takeover.

Also Read: UBS Cites $17B Hit From Rushed Credit Suisse Takeover, Blames Hasty Due Diligence

The scale of potential state support for the shotgun marriage of the country's two biggest banks has proved politically explosive and continues to draw criticism in the run-up to national elections in October, reported The Financial Times.

UBS executives also hope to not call on the government backstop when it publishes its second-quarter results on Aug. 31. Whether it will keep Credit Suisse's domestic bank, another politically contentious decision, remains to be seen.

Also Read: UBS Plans Major Layoffs Following Credit Suisse Acquisition

Separately, UBS is planning a U.S. recruiting spree for wealth managers. Some 50 financial advisers have been tapped from Bank of America's Merrill Lynch unit, JPMorgan Chase's recently acquired First Republic Bank, Citigroup, and Wells Fargo, in the first half of the year, reported Reuters.

Iqbal Khan, UBS' president of global wealth management, told Reuters that investing in that business "is a top priority."

UBS' ranks of financial advisers in the U.S. have swelled by more than 25% in the last three years, the report added.

"Over the next 20 years, we'll see the greatest transfer of wealth in history," Khan added. "That presents a huge opportunity for us to serve a whole new generation of clients."

Price Action: UBS shares are trading higher by 0.69% at $20.41 premarket on Monday.

UBS Hopes To Avoid $10B Credit Suisse Backstop, Plans To Recruit Wealth Managers