🔎20/3 Analysis: Are Banking Woes Over After UBS Takeovers Credit Suisse🤔🧐❓

🇺🇸 banking stocks rose on 20/3 (Mon) & Europe's lenders recovered from a sharp early sell-off after UBS Group's state-backed takeover of Credit Suisse (CS) appeared to close off one source of worry for the global banking sector. In a package engineered by Swiss regulators on 19/3 (Sun) UBS Group AG will pay 3 billion Swiss francs ($3.2 billion) for the 167-year-old Credit Suisse Group AG which was once worth more than $90 billion🙈🙉🙊

🤔💭Will this temporary relief sustain❓

🤔💭 Are Banking Woes Over After UBS Takeovers Credit Suisse❓

Personally, I think it’s just the calm before the storm⛈⚡️⛈🌊🌊 I doubt this relief will last & here’s why:

(1) There was a massive sell-off of UBS at pre-market (-16%) before UBS recovered & headed into positive territory suggesting that:

➡️ Investors are 🐻-ish about the takeover despite’s UBS’s assurance & the takeover is fully back by authorities😅

(2) UBS buying CS is the most dramatic moment in global banking since the financial crisis of 2008-09. Since the last crisis, regulators have sought to transfer more of the risk of a systemic 🏦 failure away from depositors & on to bondholders. This was seen as a way of strengthening 🏦 balance sheets, & avoiding contagion between 🏦🏦🏦 or the need for taxpayer-funded bailouts.

➡️ Regarding shifting of risks onto bond holders, 🎯 met😅 About $17 Billion in CS additional tier 1 (AT1) bonds were wiped out as part of the transfer to UBS, essentially reducing the burden on its new owner & hitting investors who knew they had bought risky instruments🔥🥵🔥

‼️ This means that lots of investors have lose💸💸💸 & is likely to withdraw from the stock market to avoid further losses.

➡️ Unfortunately, the contagion still couldn’t be avoided because we’re talking about humans here & humans react according to emotions generally😅😅😅

(3) Buffett is in talks with Biden regarding the bank crisis.

‼️ Buffett has a history rescuing companies during times of financial stress, aiding Bank of America & Goldman Sachs in the past. The fact that Buffett is his talks with Biden signal to me that there may be more 🏦🏦🏦 troubles ahead of which we aren’t aware of right now😅

🚨 However, the banking crisis might stabilise if Fed pauses interest rate hikes on 22/3 (Wed), so 🐯🐯🐯 let’s monitor & react accordingly💪💪💪 Do follow me if you enjoy reading analytical stock research🔍 presented in a fun & easily understandable way & for the Latest Stock Updates❣️

Please help to click on the “Like” & “Share/Repost” buttons at the Bottom Right corner so that more 🐯🐯🐯 can access this information, many thanks🤗🥰 You will Greatly Encourage Me❣️

As usual-🤔💭 Consider POV & Actions of Investors + 👩🏻‍💻👨🏻‍💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰

@TigerStars @CaptainTiger @MillionaireTiger 


$UBS Group AG(UBS)$ $Credit Suisse Group AG(CS)$ $Semiconductor Bull 3X Shares(SOXL)$  $DJIA(.DJI)$  $S&P 500(.SPX)$  $NASDAQ(.IXIC)$ 

# Regional Banks Recover From Crisis?

Modify on 2023-03-21 00:42

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  • WendyDelia
    ·2023-03-21
    Hopefully Credit Suisse can be manged well and economy of EU won't be worse.
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  • HarryCox
    ·2023-03-21
    World banks are in risks, keep cautious please! No more bank running hopefully.
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    • LMSunshine
      Agree❣️
      2023-03-21
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  • BillyWilliams
    ·2023-03-21
    Banking sectors may be bad but tech stocks are ok!!
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    • LMSunshine
      Agree❣️
      2023-03-21
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  • xiaobaii
    ·2023-03-21
    like & comment please
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  • icycrystal
    ·2023-03-21
    thanks for sharing
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    • xiaobaii
      like & comment please
      2023-03-21
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  • Tracccy
    ·2023-03-21
    Is the pause really likely to happen...haha
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  • Dollydolly
    ·2023-03-21
    I hope there will be no storms
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  • 孔团子
    ·2023-03-21
    Reply
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  • YYLSG
    ·2023-03-21
    dm
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  • CL777
    ·2023-03-21
    Gd
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  • EugeneKopi
    ·2023-03-21
    Gd sharing
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  • Jccc
    ·2023-03-21
    earnings
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  • Birdiebrog
    ·2023-03-21
    Dm
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  • Prakesh
    ·2023-03-21
    good
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  • Pinkypink
    ·2023-03-21
    ok
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  • PRO AMD
    ·2023-03-21
    Ok
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  • FilMel050321
    ·2023-03-21
    Ok
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  • nhwee
    ·2023-03-21
    Ok
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  • FilMel050321
    ·2023-03-21
    Ok
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  • Birdiebrog
    ·2023-03-21
    H
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