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  #981  
Old 29.03.2009, 11:51
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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Sadly most of the Press are only interested in dramatic headlines to sell newspapers.Marton
A day after the lacklustre response to the 40 year gilt offering the Treasury offered 13 year index linked gilts which were almost 3 times oversubscribed. This pours some cold water on the doomsters' predictions that traditional gilt buyers are shunning the UK. Didn't attract the same headlines as the the day before.
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  #982  
Old 29.03.2009, 12:50
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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A day after the lacklustre response to the 40 year gilt offering the Treasury offered 13 year index linked gilts which were almost 3 times oversubscribed.
Interesting, I did not hear that.
I still do not understand how the BOE buying gilts to put fresh money into the economy lines up with the increasing BOE gilt sales.

On a different topic the ECB are widely forecast to cut their rate another 0.5% this week. Wonder what the Swiss reaction will be? Currently @1.52 to the euro so not a drama today.
Selling francs to buy euros does not sound like a viable long term strategy to me.... Let us hope George Soros does not get interested...

Marton
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  #983  
Old 29.03.2009, 15:40
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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Interesting, I did not hear that.
I still do not understand how the BOE buying gilts to put fresh money into the economy lines up with the increasing BOE gilt sales.Marton

Buying gilts....Government prints new money
Selling gilts....Government borrows hard cash
Both are ways to finance the deficit being racked up - eventually the government will sell the gilts it buys back under QE in return for hard cash. Because it created the money to buy them back rather than using it's existing reserves, like borrowing, this is cash flow positive to the piggy bank.
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  #984  
Old 30.03.2009, 00:25
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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A day after the lacklustre response to the 40 year gilt offering the Treasury offered 13 year index linked gilts which were almost 3 times oversubscribed. This pours some cold water on the doomsters' predictions that traditional gilt buyers are shunning the UK. Didn't attract the same headlines as the the day before.
That batch of gilts were:
(a) Index linked, so less prone to inflation concerns

and

(b) Fell within the remit of the QE-powered purchasing programme.

It's a lot more attractive to buy gilts if you think you can later sell them back to the government without having to drop the price to what would otherwise be market value.

One branch of the state 'printing' money out of nowhere to fund the borrowing of another branch of the state is only going to end in one thing - disaster.
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  #985  
Old 02.04.2009, 15:07
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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On a different topic the ECB are widely forecast to cut their rate another 0.5% this week. Wonder what the Swiss reaction will be? Currently @1.52 to the euro so not a drama today.
Marton
ECB only cut 0.25% not & 0.5% today. CHF is still circa @1.52 to the euro so also no drama today.

Marton
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  #986  
Old 02.04.2009, 15:54
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

SwissRe announced today a 10% cut in its workforce over the year.
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  #987  
Old 14.04.2009, 19:05
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

There are any number of really good (sarcastic) comments out there about the crisis.
I found this one in the Rolling Stone. It is written by Matt Taibi. Enjoy!

"In the final three months of last year, the company lost more than $27 million every hour. That's $465,000 a minute, a yearly income for a median American household every six seconds, roughly $7,750 a second. And all this happened at the end of eight straight years that America devoted to frantically chasing the shadow of a terrorist threat to no avail, eight years spent stopping every citizen at every airport to search every purse, bag, crotch and briefcase for juice boxes and explosive tubes of toothpaste. Yet in the end, our government had no mechanism for searching the balance sheets of companies that held life-or-death power over our society and was unable to spot holes in the national economy the size of Libya whose entire GDP last year was smaller than AIG's 2008 losses."
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  #988  
Old 15.04.2009, 09:23
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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Hoppy, this isn't new. Sonntags has been rumouring this for the last six weeks, although initially they were saying that between 5,000 and 8,000 will be fired.
Good guess:

http://www.bloomberg.com/apps/news?p...w&refer=europe

They are paying the price of too much exposure to risky stuffs, as well as overpaid emloyees.
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  #989  
Old 15.04.2009, 19:19
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Credit Crunch Meets Climate Change

Wait for the Al Gore-alike hockey stick.

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  #990  
Old 15.04.2009, 20:13
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

UBS gains chairman but loses money and jobs
Shareholders of UBS have voted in former Swiss cabinet minister Kaspar Villiger as chairman as the bank announced huge job cuts and forecast further financial losses.
http://www.swissinfo.org/eng/front/U...06790000&ty=st
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  #991  
Old 15.04.2009, 21:07
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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UBS gains chairman but loses money and jobs
Shareholders of UBS have voted in former Swiss cabinet minister Kaspar Villiger as chairman as the bank announced huge job cuts and forecast further financial losses.
I now think UBS is "safe" but it is on a downward spiral that will be hard to arrest; no implosion just a gradual fade-away....

Marton
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  #992  
Old 16.04.2009, 09:02
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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I now think UBS is "safe" but it is on a downward spiral that will be hard to arrest; no implosion just a gradual fade-away....

Marton
From a depositor's viewpoint I think it's safe as well. After the government bail out last year, UBS is effectively a state supported bank. Moreover, after the events of the last year I can't see any Government letting any infrastrucuture bank fail. The government has done what it can to ring fence UBS from it's dodgy sub prime debts and the risk-taking legs are being cut away from the investment bank by UBS itself. What neither the government nor UBS has control over is the desertion by clients and this is what's eating the heart out of the UBS group. And it's not just clients who are walking away. With morale at the bank in the pits, a lot of good people are leaving. I reckon that there are two outcomes...it survives as UBS but not as we know it...smaller and not all things to all people. Or it shrinks to the point where somebody else buys it up like UBS did with SBC. It's not the depositors who need to worry in my view but the long suffering shareholders.

Last edited by Nev; 16.04.2009 at 09:40.
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  #993  
Old 16.04.2009, 10:14
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

UBS is still big enough, having sufficient support to survive.
So no worry, though it will not shine in short term, but will overcome current crisis.
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  #994  
Old 16.04.2009, 10:58
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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From a depositor's viewpoint I think it's safe as well.
Thanks, that is what I meant.
The shareholders are another story......

Agree totally with your post

Marton
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  #995  
Old 16.04.2009, 13:17
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

UBS will be much smaller when it's all said and done but it'll be around to become a big bank again. They aren't just about toxic assets though that has hurt them mightily. It's good for UBS to be second fiddle for once. It'll make them work harder to be No.1 again. While market cap of CS as of yesterday was about twice that of UBS, UBS still has about twice the amount under management even if it's loosing those at a good clip.
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  #996  
Old 16.04.2009, 21:56
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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....Or it shrinks to the point where somebody else buys it up like UBS did with SBC. .....
SBC bought Union Bank of Switzerland, but decided to name the fusion UBS. Prior to the fusion, SBC was smaller but stronger and more aggressive. After the fusion, Ospel and other ex SBC men had full control of UBS board and management.
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  #997  
Old 17.04.2009, 08:52
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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SBC bought Union Bank of Switzerland, but decided to name the fusion UBS. Prior to the fusion, SBC was smaller but stronger and more aggressive. After the fusion, Ospel and other ex SBC men had full control of UBS board and management.
You're right, I didn't word it well. It wasn't a straightforward buy out and a lot of the top jobs did go to former SBC managers but I thought for all that UBS shareholders ended up with the majority stake in the merged bank. I was working in Asia at the time and from what I remember at the time the merger negotiations were well advanced when UBS was weakened by hundreds of millions in trading losses the UBS's investment bank ranked up during the Asian financial crisis. I remember there was a lot of talk that the merger might stall or have to be negotiated so the UBS management team were never going to feature prominently in the share out of top jobs. Seems history has repeated itself and the SBC guys didn't learn from the experience!
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  #998  
Old 17.04.2009, 14:29
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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They are paying the price of too much exposure to risky stuffs, as well as overpaid emloyees.
hmmm the friends and collegues I had / have at ubs certainlly couldn't be classed as overpaid, paid the going the rate - yes, and also given the going rate when they where made redundent. As for the contractors there, they are being treated terribly, I hear cases of people being asked to take large rate cuts in return for 12 month contracts only to have the contracts terminated after 3 or 4 months.
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Old 17.04.2009, 14:51
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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SBC bought Union Bank of Switzerland, but decided to name the fusion UBS. Prior to the fusion, SBC was smaller but stronger and more aggressive. After the fusion, Ospel and other ex SBC men had full control of UBS board and management.
As I recall, from the UBS side it was touted as a merger, but the dominance of SBC was the reason that the SBC keys come before "UBS" in the final logo.
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Old 17.04.2009, 14:55
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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As for the contractors there, they are being treated terribly, I hear cases of people being asked to take large rate cuts in return for 12 month contracts only to have the contracts terminated after 3 or 4 months.
Same story as in 2002/2003 then. Those who were offered extensions beyond the 3 or 4 months were offered another 10% cut.
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