However, credit suisse borrowed 50B few days ago and they manage like 1T of money Does offer makes any sense? TC 300k
I worked at Lehman when Barclays took over. Not surprised. They just want the clients and client holdings, not the employees
What. $1b factors in the $50b liability. Money managed doesn’t matter, free cash does
Networth = Assets - Liabilities
raised offer to 2B but still 1/4th of their current market cap 😂
This is how the rich get richer. UBS will make a killing if this deal goes through. They'll cut 10-15k jobs in the merger to make the subsidiary profitable. They're asking the Swiss government for money to pay the inevitable lawsuits from Credit Suisse's collapse, so they won't even be on the hook for those in the future. The government should demand some sort of warrant to capture some of the upside for taxpayers.
2B
Finalized at $3bn. UBS factored in restructuring costs and bought everything just to acquire lucrative parts like wealth management. It will get rid of the rest slowly. Considering how big CS is, it's like almost buying CS for free. They will make that money in just two quarters. 1bn may not be fair, but they were forced to do the transaction, so they will have zero tolerance for downside because, why not?
Credit Suisse is an insolvent company, they are buying the brand value since there's no real other value remaining.
It was never insolvent. Real problem was losing business because of the recent news. No business = no money/loss of shareholder confidence. Led to this quickly because of recent events and social media. It has been surviving big losses for the past 4 years.
You're wrong on that. It doesn't need to make a fire sale if it's just not growing. It's a dead company.