The more things change...

 

UBS is buying Credit Suisse in bid to halt banking crisis

Updated 4:54 AM EDT, Mon March 20, 2023

London

CNN

"Switzerland’s biggest bank, UBS, has agreed to buy its ailing rival Credit Suisse in an emergency rescue deal aimed at stemming financial market panic unleashed by the failure of two American banks earlier this month."

(The dominos are already falling...slowly maybe...but they've started falling.)

"UBS is paying 3 billion Swiss francs ($3.25 billion) for Credit Suisse, about 60% less than the bank was worth when markets closed on Friday. Credit Suisse shareholders will be largely wiped out, receiving the equivalent of just 0.76 Swiss francs in UBS shares for stock that was worth 1.86 Swiss francs on Friday. Owners of $17 billion worth of “additional tier one” bonds — a riskier class of bank debt — will lose everything, Swiss regulators said."

("60% less than the bank was worth when markets closed on Friday." Everybody loves a good sale right? Especially id the regulators are just gonna write off all the bad that might have come along with it. 

BIG BANKS ARE GOING TO CONTINUE TO GET BIGGER JUST AS AI HAS REACHED ITS INFANCY.

remember that.

Write it down.

Were gonna come back to it at some time and besides somebody told you when SVB etc went up that the bigger banks would be swallowing up the mid size and regional ones was going to happen.)

"Extraordinarily, the deal will not need the approval of shareholders after the Swiss government agreed to change the law to remove any uncertainty about the deal."

(Okay what is so "extraordinary about it really? Who is shocked except the investors who never thought it would happen to them?

How about we just dont worship papper everybody?

How about that plan instead?

"the Swiss government agreed to change the law"

If you thought:

"it's okay honey we got enough"?

"the Swiss government agreed to change the law"

Ought to be sending chills down your spine.

No you dont.

Nobody does.

Very few anyway.)

"Credit Suisse (CS) had been losing the trust of investors and customers for years. In 2022, it recorded its worst loss since the global financial crisis. But confidence collapsed last week after it acknowledged “material weakness” in its bookkeeping and as the demise of Silicon Valley Bank and Signature Bank spread fear about weaker institutions at a time when soaring interest rates have undermined the value of some financial assets.

(So what makes you think the big boys are in as good as shape as they keep telling everybody that they are agian?

"after it acknowledged “material weakness” in its bookkeeping"

You really think that's an accident.

it's real simple.

Were going down, but the $ gotta disappear first.

"Shares in the 167-year-old bank fell 25% over the week, money poured from investment funds it manages and at one point account holders were withdrawing deposits of more than $10 billion per day, the Financial Times reported. An emergency loan of nearly $54 billion from the Swiss National Bank failed to stop the bleeding."

“This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue,” UBS chairman Colm Kelleher told reporters.

“It is absolutely essential to the financial structure of Switzerland and … to global finance,” he told reporters.

(To big to fail...We've seen this show, it wasn't supposed to be renewed...ever. But now that it has been renewed? Nothing to see here...carry on...)

"Given recent extraordinary and unprecedented circumstances, the announced merger represents the best available outcome,” Credit Suisse chairman Axel Lehmann said in a statement.

(It's just getting started.)

"US authorities said they supported the action and worked closely with the Swiss central bank to assist the takeover."

(Peter schiff and others are 100% absolutely correct, it's a global thing now.)

"In addition to being Switzerland’s second biggest bank, it looks after the wealth of many of the world’s richest people and offers global investment banking services. It had more than 50,000 employees at the end of 2022, 17,000 of those in Switzerland."

(How dare we loose $ on a risky investment honey, it's just not right!)