Sharing some Investing and Economic insights:
What a week it has been.
The most historic banking marriage since 2008 between Switzerland’s two big banks. UBS agreed to take over its long-time rival Credit Suisse for USD 3.2 billion – marking the biggest banking deal in years.
p/s from as much as USD 96 billion to just USD 3 billion, this means that UBS got a whopping discount!
Regulators were eager to halt a dangerous decline in confidence in the global banking system. Swiss authorities had to change the country’s laws as they rushed to finalize the deal. The Swiss government will also provide more than USD 9 billion to support losses that UBS may incur by the takeover. The Swiss National Bank also provided more than USD 100 billion of liquidity to UBS to help facilitate the deal.
The speedy orchestration of this “forced marriage” engineered by the Swiss authorities just shows how bad the situation is.
However, stocks rallied yesterday (after huge drop last week) as investors breathed a sigh of relief that a historic weekend rescue of the financial heavyweight has potentially stopped the banking crisis contagion – for now.
Raiz is about helping you save & invest more – being able to save 5% of your salary is better than earning 5% return. Having a disciplined savings habit can help improve your financial position quicker (than spending time choosing the best fund manager).
Do you know?
Biggest bank in the world is Industrial and Commercial Bank of China (ICBC) with assets of more than USD 5.5 trillion.
2nd is China Construction Bank (USD 4.7 trillion).
Source: 2022 S&P Global Market Intelligence report
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