UBS Acquisition Of Credit Suisse: Deal Of The Century

zookie
2023-04-04

An investment bank book value is only real when it is a going concern. The divestment of IB would result in billions of write downs and significant costs remain.Similarly with the WM platform. Once confidence is lost and revenue is gone, it is a loss making and then becomes negative equity. WM efficiency ratios are high…usually in the 70s or 80s.CS was in a complete tailspin.

In the 1920's the average bank had a leverage ratio of 5 to 1 and they still failed. Banks today are 5 times more leveraged than in the 20's. I'm not sure we can stop what is coming. The sad thing is that the too big to fail banks will be the beneficiaries once again as much stronger regional banks may go down because they are not too big to fail. It will be a destruction of smaller banks. Small businesses will be crushed and the billionaires will get richer. Oh well, back to dancing with the stars. $Credit Suisse Group AG(CS)$

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