And then there were 3

From CNN:

UBS is buying Credit Suisse in bid to halt banking crisis

Switzerland’s biggest bank, UBS, has agreed to buy its ailing rival Credit Suisse in an emergency rescue deal aimed at stemming financial market panic unleashed by the failure of two American banks earlier this month. 

“UBS today announced the takeover of Credit Suisse,” the Swiss National Bank said in a statement Sunday. It said the rescue would “secure financial stability and protect the Swiss economy.”

UBS is paying 3 billion Swiss francs ($3.25 billion) for Credit Suisse, about 60% less than the bank was worth when markets closed on Friday. Credit Suisse shareholders will be largely wiped out, receiving the equivalent of just 0.76 Swiss francs in UBS shares for stock that was worth 1.86 Swiss francs on Friday. Owners of $17 billion worth of “additional tier one” bonds — a riskier class of bank debt — will lose everything, Swiss regulators said.

Extraordinarily, the deal will not need the approval of shareholders after the Swiss government agreed to change the law to remove any uncertainty about the deal.

Credit Suisse (CS) had been losing the trust of investors and customers for years. In 2022, it recorded its worst loss since the global financial crisis. But confidence collapsed last week after it acknowledged “material weakness” in its bookkeeping and as the demise of Silicon Valley Bank and Signature Bank spread fear about weaker institutions at a time when soaring interest rates have undermined the value of some financial assets.

Shares in the 167-year-old bank fell 25% over the week, money poured from investment funds it manages and at one point account holders were withdrawing deposits of more than $10 billion per day, the Financial Times reported. An emergency loan of nearly $54 billion from the Swiss National Bank failed to stop the bleeding. 

But it did “build a bridge” to the weekend, to allow the rescue to be pieced together, Swiss officials said Sunday night. 

“This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue,” UBS chairman Colm Kelleher told reporters.

“It is absolutely essential to the financial structure of Switzerland and … to global finance,” he told reporters.

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53 Responses to And then there were 3

  1. dentssdunnigan says:

    first

  2. Juice Box says:

    Colm Kelleher is Irish too.

  3. Fast Eddie says:

    Sold for $1.155 million in 2016, asking $2.150 million today. It was an open house yesterday. I was in the area, drove by it at around 3:00 PM and there were six cars outside, two had NY plates. If this had six cars outside three hours into an open house, I can only imagine the frenzy at open houses in the 600K range:

    https://www.trulia.com/p/nj/river-vale/519-brook-ave-river-vale-nj-07675–1150793872

  4. Bruiser says:

    Banking system has been saved! Party on, Wayne!

  5. grim says:

    That might just be the best google maps real estate photobomb in history.

    Shirtless in a lounge chair on his front lawn, two dogs running around. Kids toys and shit everywhere. Not only are the garbage cans clearly stored permanently on the curb, but I don’t think any of them actually match. The mid 90s blazer on the mud driveway is a nice touch too.

  6. Fast Eddie says:

    Juice,

    Nice catch! Lol. No doubt, this guy stopped watching NASCAR when Dale Sr. died. I need to go visit these people. Talladega Nights right here in prestigious Bergen County!

  7. grim says:

    Love that price history.

    Sold 9/12/2003 – $930,000
    Listed 7/26/2011 – $989,000
    Sold 8/17/2012 – $466,000

    (I’m guessing this is post-subdivision though, that would explain the huge price drop.)

  8. Juice Box says:

    From the looks of it the google map pic it is summer of 2018. Landscaper probably cut a deal with that neighbor to clear his land if they let them use his driveway for the trucks to bring in the rock and dirt used while they were still doing backyard construction on the new home. There is some very expensive landscaping back there with large rocks and an artificial stream in the backyard and still under construction pool house etc. There is no way they were going to drive over the new basketball court with trucks.

  9. grim says:

    Microsoft on a roll, now combining the Nuance acquisition with OpenAI tech.

    Perhaps their AI ethics team were indeed putting the brakes on everything.

    https://www.cnbc.com/2023/03/20/microsoft-nuance-announce-clinical-notes-application-powered-by-openai.html

    Microsoft making Google look like a dinosaur.

  10. Juice Box says:

    lol – Speaking of Dinosaurs!!!

    Nuance’s Dragon Medical One speech recognition application?

    This is the same company that put out Dragon NaturallySpeaking back in 1997 and the MSDOS and Mac versions of DragonDictate.

    Well not exactly the same what was left of them after the founders a couple Dr. James Baker and Dr Janet M. Baker lost it all to some accounting fraud from the company that acquired them. Microsoft purchased the remnants in 2021.

  11. grim says:

    Nuance is a big player in speech rec – I don’t mean the shitty desktop stuff, I’m talking about the back-end ASR tech used across millions of minutes of phone conversations every day. They are the household name when it comes to transcribing text to speech to enable automation.

    If you’ve ever called a company and gotten a speech rec IVR (tell me in your own words how I can help you today) – there is probably a 75% chance that touched Nuance.

    Or, if you’ve ever heard “this call may be recorded for quality purposes”, I’d say there was probably a 20-25% chance that the phone call was piped through Nuance to transcribe speech to text to facilitate automated quality monitoring and analytics.

  12. grim says:

    Though the tech isn’t necessarily that differentiated anymore, especially with so many competitors, and the big cloud co’s having compelling in-platform options available.

    Verticalization is a big part of differentiation, and healthcare is a lucrative area of focus.

    I believe for a long while, Siri used Nuance ASR (for better or for worse).

  13. leftwing says:

    Lol, I’m guessing while not being far out of character our shirtless hero antics are intentional… kind of a big FU on slamming up something so out of character with the neighborhood right next to him.

    The truck on the patch of grass is a tipoff… looks like it’s sitting right on the property line. Regular drunken hillbillies have nowhere near that precision.

  14. Juice Box says:

    I dunno. Looking at the pics again, I am pretty sure he sold the top 1 ft of his backyard topsoil to the neighbor as fill.

  15. grim says:

    Needed a place for all that runoff to drain…

  16. Juice Box says:

    Louis C.K. loses out big on his Manhattan Real Estate.

    LouisC.K. sold a West Village condo in December for $1.9 million, $550,000 less than he paid eight years earlier. And now, he’s just unloaded his West Village townhouse for $5.8 million, $700,000 less than he paid for the nearly 200-year-old house back in 2012.

    C.K. initially asked $8.5 million but the price quickly dropped to a more realistic $6.5 million before it enticed a serious buyer, but it still sold for 32% below asking price.

  17. Juice Box says:

    What is that I hear in the distance? The unmistakable sound of leaf blowers, so it must be the first day of spring.

    Temps are rising above 55 degrees, so get out there are fertilize your lawn before the rain comes this weekend.

  18. Juice Box says:

    Talk about geeking out. New Jersey Tesla owners celebrate the Oscar win for the best original song “Naatu Naatu”

    https://twitter.com/RRRMovie/status/1637697905950863361?cxt=HHwWgsDR2bHkorotAAAA

  19. NJGator says:

    Down goes DeCamp

    ““Despite the company’s best efforts, monthly ridership averages 20% or less of pre-COVID levels. DeCamp has sustained commuter services up to this point, thanks to the various federal and state financial assistance programs. But, without further assistance on the horizon, the economic losses from continued operations of the commuter services are too much to bear.”

    https://baristanet.com/2023/03/say-it-aint-so-decamp-calls-it-quits-will-cease-commuter-services-to-nyc-effective-april-7/

  20. The Great Pumpkin says:

    More deflationary signals?

    NJGator says:
    March 20, 2023 at 12:34 pm
    Down goes DeCamp

  21. grim says:

    How a private bus line could stay in business post covid is beyond me. I would imagine they would need to be almost entirely state supported.

    Has nothing to do with deflation – you aren’t going to run a public transportation system in the Northeast without a huge amount of subsidy.

  22. leftwing says:

    Not to mention your effective fixed costs – of which I would include fuel since it costs the same to run an empty bus or a full one into Manhattan – are disproportionately high…

    They probably need to run over 80% capacity just to break even, giving them profit only when buses are 80-100% full…I’m surprised it took this long

  23. The Great Pumpkin says:

    Treasury yields are falling. Banking crises always have a deflationary effect.

    This bus company will no longer get the funding for said routes. Some driver will lose a job or all drivers will have less hours. This is deflationary imo.

  24. BananaJoe says:

    They should have gone woke. Maybe put some trannies behind the wheel and painted the buses rainbow. Appoint a few democrat donors to the board and then wait for the bailout. Call it equity.

  25. 3b says:

    Good interview with Leon Cooperman , discussing the disastrous Fed policy over the last decade. This is what happens when you keep rates a too low for too long.

  26. ExEx says:

    2:55 define woke…

  27. ExEx says:

    “…crickets…”

  28. leftwing says:

    chi, lib, brt, 3b….so, a 77% probability of a 25, rest no change….that’s rising….again without any care as to what they actually end up doing, is there a trade in there just based on expectations and volatility….

    Looking at putting some low cost, high payout longs on through options in the event these guys actually go zero, or go 25bps and there is just a relief rally…which I would expect almost in any case. Even JPow can’t fuck up the presser on this one lol. Looking at writing some shorts again through options on some of the highest volatility stuff, again, on just the relief thesis…thoughts?

    Basically looking for the shorts to be down 10% before any loss and the premium taken in from them to mostly offset the cost of the longs…so net nearly no money at risk if the markets just sit there or decline, and big upsies if we get relief…

  29. No One says:

    Ex Ex,
    Here’s a definition of “woke” from a professional linguist, John McWhorter
    http://www.youtube.com/watch?v=D8H4bO0KDM4&t=53s

  30. SmallGovConservative says:

    grim says:
    March 20, 2023 at 1:54 pm
    “How a private bus line could stay in business post covid is beyond me…”

    My company makes ends meet — I think — by running tours (DC, Philly, Quebec, etc) and casino drops. In fact, I think several of their commuter runs through Clinton, Easton, Allentown have added Wind Creek in Pennsy as a stop, and I suspect that really helps to boost ridership on their runs. But yes, very hard to see how a company survives as a commuter service only.

  31. The Great Pumpkin says:

    Left,

    I know it doesn’t make much sense, but I expect a rally before we end up hitting lows. See what happens. We might not hit lows till end of this year or next year. Going to take some time.

  32. The Great Pumpkin says:

    Grim,

    I’m willing to say a deflationary event is coming. Demographics and debt says so. Tic Tic Tic…let’s hope innovation can overcome it, but odds are against it.

  33. The Great Pumpkin says:

    JPMORGAN CHASE OWNED BAGS OF MATERIAL KEPT IN A DUTCH WAREHOUSE THAT WERE SUPPOSED TO CONTAIN NICKEL BUT TURNED OUT TO BE FULL OF STONES – WSJ

  34. BRT says:

    I’m almost entirely out…still burnt out from the past year. Probably for the best. I was short copper/oil/wheat stocks this past week and got stopped out this morning. Banked decent gains, nothing to brag about. My trading account is 50% USD, 10% gold, 20% yen, 20% long semiconductors. Might just move out of the semiconductor position tomorrow though. I’ve experienced one too many mega red/green 5 minute candles up the wazoo on these days.

  35. leftwing says:

    Best idea for a rocket ship if Fed comes in at zero or a soft 25?

    Quality companies or ETFs, no CW shitcos or equivalents…

  36. BRT says:

    I woulda said SMH or SOXL, both still in well established uptrend. The market is drooling for a zero.

  37. Libturd says:

    I’m staying away for now. Too much bullshit going on. I still think the bottom is going to drop out, just a matter of time. Regardless of the FED actions. Went shopping in person on Friday. Prices ARE on the rise again. This time it’s in a lot of the dry goods. Not shit I usually buy, but still insane. For example, chips (tortilla or potato). Used to be 2 for $6 on sale are now 2 for $7 or $8 or at best, 3 for $10. Crackers too. Basically, it seems like everything just went up another 5 to 10%. I very occasionally eat Burger King when on the road. Maybe once every two months. Every Thursday or so, I get coupons in the snailmail with the local supermarket flyers. Everything is up another 50 cents, the prices jumped 50 cents back in November or December too. For example, Jr., always got the chicken fries and medium french fry deal. It used to be $3. Went up to $3.49 and now $3.99. $3 to $4 is a monstrous increase in 5 months. You simply can’t buy fast food without a coupon. Everything doubles or even triples in price without them. Most combo meals are now $9. With coupons, they are $5 or $6 tops. If you really want to flip, go to Whole Foods or Kings. There is little in the store now for under $7 or $8 a pound. That’s what lobster used to cost at retail.

    And to make matters worse, increases at work averaged 2.5%.

    The bottom IS going to fall out. It’s just a matter of time. Same with housing. When Gary starts posting endless insanity, that’s when you know it’s coming.

    Be careful out there. Especially home buyers. We’ve seen all this before.

  38. leftwing says:

    I think anything other than JPow totally blowing the presser – not out of the question – and you get a relief move…volatility has been crazy….yet with all the flows into the megacaps VIX is understated at 24…

    Tell me this is indicative of a 24 VIX lol….https://imgur.com/a/a9FNCQb

    Looking for a sigh of relief.

  39. leftwing says:

    That’s during the course of today…ONE day…these aren’t penny stocks nor SVB…

  40. leftwing says:

    “It used to be $3. Went up to $3.49 and now $3.99. $3 to $4 is a monstrous increase in 5 months.”

    NYT just emailed me they’re bumping me from $17 to $20. Digital. And for every four weeks, not monthly…so it’s actually more monthly…

    WSJ for my Dad – who likes print – is a fucking joke…marching up in $5 increments..40 > 45 > 50….and a notice to 55 in April, all since last year…knock down drag out with someone on the sub-Continent convinced him I could pull mine, my kid’s, and my sister’s subscriptions in addition to my dad’s finally got him down to $28 monthly for six months then back to 55…sister and I agreed (we split the subscription) but also are going to tell dear dad he’s got to get used to this app on his laptop as nearly 700 bucks annually is insane.

  41. Libturd says:

    It seems crazy. But I’m content right now with my 4.5 to 5.2% interest bearing savings and checking accounts. It’s just too easy and risk free.

  42. Libturd says:

    Inflation is back and it;s not energy driven this time. That’s the scary part. It’s beginning to feel a little like the FED can’t stop it, like in the early 80s. We might be stuck on quarter point increases for quite a while.

  43. Fast Eddie says:

    Prices out of control, rampant crime, wide open borders, bank failures, war in Europe, China/Russia alliance… none of it matters. What really matters is Trump is going to be indicted on a borderline misdemeanor!! Vote democrat! We demand drag time story hour, kindergarten s.ex change and free weed delivery!

  44. BananaJoe says:

    Woke is an adaptation of cultural Marxism. Rather than dividing based on class, woke divides based on perceived identity. Proponents of woke seek privileges and special treatment based in historical or claimed inequalities.

  45. Libturd says:

    Banana Joe,

    You’re just jealous you don’t get to read to kids in the library anymore. Or do you?

  46. Libturd says:

    Respecting those not born as white males in America is what is responsible for the economic downfall we are experiencing. This has absolutely nothing to do with providing tax breaks to corporations when the stock market was moving up at 15% a year and begging for negative interest rates from the FED to boot.

    I’m sure it was Robert(a) at the library reading fairy tales to adolescents that was the cause. I do recall learning about trans(itivity) in Microeconomics 100. That MUST have been it!

  47. BRT says:

    You keep eating burger king, that’s not the only thing that will drop out

  48. Libturd says:

    “You keep eating burger king, that’s not the only thing that will drop out”

    Oh believe me, I know. The older I get, the more I find myself ordering the fish sandwich (never a damn coupon for it either). I do get it with lettuce and tomato and none of that mayo or tarter sauce. It’s actually surprisingly good, albeit saltier than the ocean that fish was taken from.

  49. BRT says:

    That’s why I like the Japanese Yen play. The dollar is simply mean reverting from the insanity that was last year.

  50. Libturd says:

    BRT,

    It’s an interesting play. For the first time in a long time, I have some money in the international markets as well. Not a huge amount, but things got completely out of control here.

  51. ExEx says:

    Gangland is changing. The days of ‘racially pure’ crime groups are over, being replaced with more inclusive, “woke” organisations.

    One group in particular is leading the charge in the new era of liberal gangsters, says Peter Edwards, the best selling crime author and creator of Netflix’s Bad Blood.

    Peter, 67, explained: “There’s a gang in Canada called the United Nations, it’s because they have everybody.”

    READ MORE: ‘Gangster told me that using seemingly innocent word to address mobster could be fatal’

    The organised crime reporter at the Toronto Star gave the Daily Star a sneak peek into the gang life of the United Nations (UN).

    The UN grew out of Vancouver, Canada, in 1997 but are now multi-ethnic and international with “close ties to Mexican drug cartels”.

    https://www.dailystar.co.uk/news/us-news/inside-violent-woke-gang-defeated-29485653

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