UBS + CS = ?
We live in a great time when Credit Suisse is about to be sold to UBS at 1 billion, when its market capitalization exceeded 90 billion in 2007!
In 2022 alone, CS’s stock has collapsed by 75%.
This is the period of wild sales because 1 billion would be paid by UBS while the stock market value of CS was still 5 billion at the close last Friday…
The shareholders of CS, in summary, will only receive 25% of the value of their shares and, meanwhile, the Swiss Government hastily prepares a modification of the law – yes just that! – so that CS shareholders are not consulted and cannot vote in the context of this takeover. A fine example of democracy served without any scruple by a Bernese executive literally panicked as soon as we touch what is most sacred to him: a BANK.
I ask myself a question: with its 270 branches worldwide, the 10 most important of which are worth at least 500 million, this price of 1 billion clearly implies heaps of corpses and rotten assets which until then have been carefully concealed. A bit like the takeover, in 2008, by JP Morgan of Bear Stearns at $2 a share which was not even worth that price…
This billion to take over CS is only a face rescue: to show the people, credulous and confident, that the bank is not worth 0.
The amount of this recovery and the negotiations (of which I receive multiple echoes) indicate that UBS really has no desire to take responsibility for CS and the rubbish lying around in its cupboards and in its garbage cans.
That is why, as a last resort, CS will be nationalized and the losses will be – again and again and again and again – socialized.
Until the Swiss, American, European citizen… once and for all stands up against such criminal practices.
A central bank should not do this!
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