FWIW, Formula 1 this weekend on Jeddah

UBS not exactly having a glorious history of stability either ... remember the fiasco post 2008 GFC with the 'bad bank' and the multiple injections of tens of billions of CHF from the 'government' (ie taxpayers)? It was over 45bn in the end, wasn't it?



This probably means Swizerland going with begging bowl to the Fed for some sort of dollar bailout (it always boils down to not enough dollars with international banks) and Swiss Neutrality being further eroded as a quid pro quo for monetary support...

High hopes that the Silicon Valley bank was a contender have recently been muted ....

https://twitter.com/WallStreetSilv/s...47255789608960


Classic!

But they forgot to add that he also said that he didn't think it would be necessary anyway... (but of course, that wouldn't make for a good headline, would it?).

At least on the short term, losing customer deposits might actually make it better financed because the equity, while unchanged, needs to cover fewer liabilities. So that ratio should improve.

However that's a detrimental thing in the medium to long term because that directly translates to reduced revenues while most costs remain unchanged (brace for more cuts in the employee numbers).

I have no problems with the state stepping in and taking the bank over. But only if the entire equity got wiped out, including the contingent capital. That would also require holding the board and management members personally liable. That this didn't happen 15 years ago with the UBS is Hildbrands biggest blunder and can't be repeated.

It was CHF 70 billion, and with a high rate of interest. Further UBS has now fully repaid the loan. This didn't impact taxpayers at all, in fact the government / SNB made a good profit out of it.

Switzerland will never go begging to the Fed, they don't need to. The Swiss Franc is a FIAT currency and a very strong one at that, with very healthy gold reserves. If they had to they could just print some more Francs.

the level of ignorance..