UBS agrees to buy Credit Suisse for more than $3bn
updated: UBS agreed to buy rival Swiss bank Credit Suisse for 3 billion Swiss francs ($3.23 billion) and agreed to assume up to $5.4 billion in losses (Reuters)
Still a steal but seems like they are going with UBS takeover rather than nationalizing
Well, good luck to everyone at the new UBS/CS. Hope cuts are not as bad as reported
......................................surprise
Will offers for incoming be rescinded?
No idea. We don’t even know the fate of CS IBD.
Most likely unfortunately
Barclays extended offers to all incoming Lehman interns in 2008, can't say for sure if UBS will do the same tho
You: landed an offer at a company that advises on acquisitions
Also you when your company gets acquired: "fuck this system"
Tfw you are now the synergy
I doubt this is the end of the story. For once, the Saudis and Qataris are going to be pissed, and given energy prices they have quite a lot of political power rn… Good luck to the Swiss with their oil & gas bills lmao
It also makes the country as a whole less favorable for investors. You can’t sell law & order and then switch and change when it suits you to shaft everyone else
Bear Stearns shareholders got basically wiped out in the exact same way. US used the same exemption as the Swiss are to push through the 2008 deals over the weekend.
Let's be real, after all of the drama last week and this weekend, if there was no deal at market open tomorrow CS would immediately collapse. A loss on an already failing bank is better than systematic failure and potential contagion.
True, but there are some major differences, mainly that a) the US is the largest economy and as such gets a lot more leeway and b) that the US economy does not depend on the Saudis / Qataris the same way the Swiss do
At the very least, how many billions are there stored in Swiss banks from Middle Eastern Sheiks? How many will pull the money as a sign of protest?
The Swiss made a choice to screw foreign countries as to avoid a public bailout. Fair game. This being said, there will be consequences for a fact. There is no universe in which two nations take massive Ls because of some shady shenanigans by the Swiss government and they swallow the pill
Whats the fate for incoming interns in AM?
No one knows and it's just speculation.
That said, I'd guess better chances than IB interns - CSAM is a solid asset that was already for sale with strong interest. UBS could spin it quickly for more than they bought all of CS for.
Bro WHAT THE HECK. Can't believe UBS is turning me into a SYNERGY. Maybe this M&A stuff is fucked
Are offers for UBS incoming FT going to be fine?
A reputable news source, FT who has been pretty on top of this, was saying combined investment bank was going to be a 1/3rd of its current combined size so one has to assume no one is safe be they from CS or UBS. Wouldn’t renege, but would start preparing to interview just in case because no one really knows how this plays out
Nothing officially announced, I would consider you safer than current CS staff. Companies tend to favor their own in these situations; but hard to say.
1/3 of the combined group. UBS is like 1/3 IB right now, this just means that they will keep the same ratio with UBS+CS. I am sure some bottom bucket at UBS may be cut but its far from dire for anyone in UBS IB currently.
$2bn sounds like nothing to me. What the fuck CS have on their books to make them so cheap?
Not sure if that will calm the market enough. Let’s hope
My prediction is to send it into further spiral
Wow. CS shareholders really got the short end of it
To be fair that’s actually the point of equity. Risk in both directions
in normal times shareholders get to vote on a proposal like this
The bankers discover what it means to be a synergy in someone’s model.
Live and die by synergies
Such a savage comment lmao.
Am I stupid or is this just super cheap? RBC agreed to buy HSBC CANADA for 13$billion CAD which is still far more than this supposed BB. Someone tell me if i’m missing something.
It's insanely cheap if just off CS's share price at close but it's coming from the fact that:
1. UBS is basically in the position to strong-arm the government into allowing as cheap a price as possible
2. There is a material risk of contagion to UBS
Are the junior bankers also getting massively screwed out of their bonus since payments were set for April / July / October?
I imagine they'll take on all liabilities of CS, including deferred compensation. That would mean they'll have to pay it out even if headcount is reduced.
Just look for another job. Not the end of the world.
"" The government "regrets" that Credit Suisse wasn't able to solve the problems on its own, the finance minister says. That's also because thousands of employees are affected, she adds, urging UBS to achieve clarity about the job status for Credit Suisse staff as quickly as possible. ""-BLOOMBERG 3/19/23
Hopefully this will calm the market
What will happen to incoming UBS summer analysts within the IBD?
Are you incoming to London?
nope, NYC
Wow what a year 2023 is already …
Just saw a UBS IB note saying that some planned growth will be accelerated. Markets will maintain current size. Will move quickly to derisk CS and move non strategic to a NCU.
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