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  #1401  
Old 28.10.2009, 15:59
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

That's my point - they don't lend it people who don't have the money - who want to pay their staff - who want to grow their business -
Banks would rather sit on the money they are supposed to be lending - they would rather call their loans in early in order to build up their own cash reserves -
Please don't tell me banks are doing some kind of philanthropic service-All they are bothered about are their own interests.

As for keeping money under the mattress - YES I WILL DO THIS because that is where it is safest. I cannot trust banks to look after my interests any more. Banks can go and get their stake money from somewhere else.
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  #1402  
Old 28.10.2009, 17:30
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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As for keeping money under the mattress - YES I WILL DO THIS because that is where it is safest. I cannot trust banks to look after my interests any more. Banks can go and get their stake money from somewhere else.
If you really think banks are there to milk their depositors, take all of the upside and none of the downside then there are alternatives to stuffing it under your bed. Take a look at the islamic banking model. I'm not an expert but from what I've read and heard their model is based on principles of ethical investments and the sharing of profit. Here's HSBC's product.
http://www.hsbcamanah.com/amanah/personal/accounts.html

I'm sure there are islamic banks operating in Switzerland.
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  #1403  
Old 28.10.2009, 18:20
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

Thank you Nev,
As I wrote my last entry it did become clear to me that the Islamic banking model does make sense now.

I wonder if we could put a minaret on the UBS opposite the station in Geneva?
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  #1404  
Old 02.11.2009, 19:26
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

I think someone asked about naked short-selling and I just saw this:

http://www.huffingtonpost.com/2009/1..._n_342132.html
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  #1405  
Old 03.11.2009, 11:41
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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The new UBS management want to write off legacy liabilities and blame those on the previous CEO/CFO. From next quarter onwards, the new CEO must show results.
Another loss announced today, maybe results next quarter?
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  #1406  
Old 03.11.2009, 11:45
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

today's loss really makes one wonder how deep in the red UBS really were!
Except RBS and Lloyds who also queued up for second round government funds recently, most other biggies like Goldman and Deutsche all made bigger than forecast profits due to wider spreads and less competition.

UBS must have really really bad bets
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  #1407  
Old 03.11.2009, 11:52
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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most other biggies like Goldman and Deutsche all made bigger than forecast profits due to wider spreads and less competition.
Driven by investment banking profits trading big rallies in bond and equity markets which were in turn driven by the massive amounts of liquidity pumped in the system by central banks.
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  #1408  
Old 03.11.2009, 12:26
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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Driven by investment banking profits trading big rallies in bond and equity markets which were in turn driven by the massive amounts of liquidity pumped in the system by central banks.
which is a bit like the umpire widening the goal by 10 feet .. and poor UBS still can't get the ball in there.

(well to be honest, some of the charges related to the rise in the market value of their debt - which has nothing to do with how well they go about their business. However, since the stupid accounting rules allowed them to book gains when their debt fell, it is time to pay back the system now.)
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  #1409  
Old 03.11.2009, 17:36
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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today's loss really makes one wonder how deep in the red UBS really were!
Except RBS and Lloyds who also queued up for second round government funds recently, most other biggies like Goldman and Deutsche all made bigger than forecast profits due to wider spreads and less competition.

UBS must have really really bad bets
& 37Bn of customer money walked out of UBS this quarter

Today RBS and Lloyds collected another £40Bn from UK tax payers.
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  #1410  
Old 04.11.2009, 12:41
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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& 37Bn of customer money walked out of UBS this quarter
which included my measly 75k
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  #1411  
Old 04.11.2009, 17:13
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

From today's paper
"UBS, which lost more money than any other bank during the credit crunch, is rebuilding its investment banking unit to catch up with rivals, such as Goldman Sachs and Credit Suisse, which are posting rising profits.

The Swiss bank is rehiring some of the traders that it fired from its fixed income unit – the division that used the bank's books to take huge risks, and the main contributor to UBS's $50bn (£34bn) of losses and write-downs."

What is the expression? - " I do not know whether to laugh or cry"
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  #1412  
Old 04.11.2009, 17:31
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

I also read in today's 20min that UBS increased salaries for various senior-mid level personnel to account for reduction in bonuses..

nice!
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  #1413  
Old 04.11.2009, 18:08
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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UBS, which lost more money than any other bank during the credit crunch, is rebuilding its investment banking unit to catch up with rivals, such as Goldman Sachs and Credit Suisse, which are posting rising profits. The Swiss bank is rehiring some of the traders that it fired from its fixed income unit
Nothing wrong with that as long as they've learned their lessons and have the people, systems, procedures and management in place to identify, evaluate, monitor and manage risk. Castrating their investment bank was an ill thought out and knee jerk reaction which said a lot about their management at the time. You don't have to leverage up on illiquid positions to make money trading fixed income (or equities come to that). If I was a shareholder I'd be happy to hear this.
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  #1414  
Old 04.11.2009, 18:17
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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I also read in today's 20min that UBS increased salaries for various senior-mid level personnel to account for reduction in bonuses..

nice!
Don't lose any sleep over it. It's smoke and mirrors. The variable bonus part of the comp. equation has always had a big non-discretionary element to it. The fixed "base salaries" were never intended to reflect the full going rate for the job.
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  #1415  
Old 04.11.2009, 20:36
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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Don't lose any sleep over it. It's smoke and mirrors. The variable bonus part of the comp. equation has always had a big non-discretionary element to it. The fixed "base salaries" were never intended to reflect the full going rate for the job.

Guaranteed Bonus ... now there's an Oxymoron if I ever heard one.
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  #1416  
Old 04.11.2009, 23:04
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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Guaranteed Bonus ... now there's an Oxymoron if I ever heard one.
Agreed. But in the end it's just semantics. Sign on fee, golden hello, retention award....call it what you will, it all ends up as non discretionary.

Total comp pools aren't arbitrary. They're usually geared to some sort of comp to pre-comp PBT payout ratio so profitability drives the overall pool. And once the pool is fixed you top slice the non discretionary base salaries and guaranteed bonuses, then what's left is divided up as discretionary bonuses to the rank and file. So guarantees cannibalise the bonus pool against those not on guarantees. At the end of the day, comp. is food taken out of the mouths of shareholders. If they don't stand up and do something about it then nothing will change.
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  #1417  
Old 05.11.2009, 15:56
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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At the end of the day, comp. is food taken out of the mouths of shareholders. If they don't stand up and do something about it then nothing will change.
and that is what I don't get ... how come the free market doesn't get the fact that the managers take most of the value generated in the I-banking business?

there are several studies that show that over the long term, the I-banks have failed to generated outsize shareholder returns, yet GS is back up to $180 - not six months after it almost went bust !!

is it the warm glow of Goldman and all the billions you know are sloshing around inside it?
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  #1418  
Old 05.11.2009, 16:36
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

Goldman isn't the best example. Buffet ain't complaining and even the US taxpayer did well out of the warrants. But your point is well taken Dino. If I was a Morgan Stanley shareholder I'd be pis$ed. Even the 5% dividend was cut. Of course one thing that makes these places different is the relatively high percentage of employee shareholders who aren't going to rock the big bonus boat.
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  #1419  
Old 05.11.2009, 23:24
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

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Goldman isn't the best example. Buffet ain't complaining and even the US taxpayer did well out of the warrants. But your point is well taken Dino. If I was a Morgan Stanley shareholder I'd be pis$ed. Even the 5% dividend was cut. Of course one thing that makes these places different is the relatively high percentage of employee shareholders who aren't going to rock the big bonus boat.
from today's paper
"UBS has been hit with the third-biggest fine levied by the UK financial watchdog after senior employees were discovered using money taken from customer accounts to speculate in foreign currencies and commodities."

Only circa euro 30m from clients....

peanuts!
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  #1420  
Old 05.11.2009, 23:39
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Re: Financial Crisis Bank News [was: How Safe is UBS?]

These losses could all pale into insignificance if the Rising Sun goes under:
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