Credit Suisse asset 1.3 trillion and UBS buy over 2bil? Huh something wrong, is it Russian withdraw $???

[Eisenhut]

obviously the Western media is not revealing the whole story, why suddenly all these bank collapse? We talking about Switzerland, richest of the rich. Likely Russians are fking the swiss by withdrawal of their $. And first time Switzerland begging to join NATO.​

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UBS is buying Credit Suisse in bid to halt banking crisis​

By Mark Thompson, CNN
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.
"UBS today announced the takeover of Credit Suisse," the Swiss National Bank said in a statement Sunday. It said the rescue would "secure financial stability and protect the Swiss economy."
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.

 

[Rogue Trader]

It's not the net worth but solvency that matters

 

[syed putra]

The west decided to kill themselves as covid failed to do so.

 

[laksaboy]

They are deliberately imploding the banks to prepare for introducing the CBDC: central bank digital currency. The ones who say yes to this are most likely the same ones who faithfully got all their Covid booster shots.

 

[eatshitndie]

assets may be $1.3t but liabilities may top that at $1.369t.

 

[Willamshakespear]

As per the headline, a question remains - WHAT Credit Suisse $1.3 Trillion assets?

Most banks accepts deposits, use those funds to generate returns thru investments & loans, in order to gain returns & profits. What probably happened to Credit Suisse is that many of those investments & loans turned sour, & likely gone, & thus its woes, & unable to return deposits. While it does still have funds & proper documentations to go after lenders to regain back loans & investments, it will take years of legal work to make it so, if even possible.

Thus, in the short - term to resolve the depositors' worries, UBS buys up CS at $2Billion for what it is truly worth - its fix assets such as bank's buildings, mgmt staff, equipment, etc, as well as prepare funds for the legal costs to claw back any loaned money if possible.

One thing that is true is that money DOES NOT DISAPPEAR into thin air, even when loaned funds for enterprises turned bankrupt. Money just simply flows out to others - such as contractors, legal firms, taxes, workers, supply chains, etc, as such are needed for an enterprise that took out loans to start a biz.

For example, for simplicity sake, if Credit Suisse no longer own $1.3 Trillion worth of assets, such assets simply went to another's pocket. Thus there is $1.3 Trillion floating in the market, either in other banks or hiding under beds at home.

In order to save the banking industry, someone will just have to ENTICE the funds back into better regulated banks or financial institutions, perhaps with innovations, better interest rates for savings or safe sovereign bonds. From there, better regulations for depositors funds can be assured, & at least some of the profits generated can re-distributed to those hard hit by the falls of failed banks, thru - yes, even soup kitchens as the last drastic measure to save lives.

 

[Rogue Trader]

The shocking development today is the Swiss banking regulators just wrote off $17 billion worth of Credit Suisse bonds.

Bonds are supposed to be the safest collateral in finance. Euro money will flee Switzerland now. Expect $2M hdb resale flats soon

 

[Eisenhut]

The shocking development today is the Swiss banking regulators just wrote off $17 billion worth of Credit Suisse bonds.

Bonds are supposed to be the safest collateral in finance. Euro money will flee Switzerland now. Expect $2M hdb resale flats soon

Singapore and PAP is lumber 1!!!