In the Igbo Nation, the elders will say that “a bird that flew from the ground only to perch on an ant-hill is still very much on the ground.” Hahaha. That leads me to the revelation that UBS, which rescued Credit Suisse just a few weeks ago, with limited due diligence, will take a $17 billion hit from the takeover. Yes, you rescued a bank and you lost $17 billion just because you did. Indeed, you hope you may not need rescuing in years!
“UBS, in a Tuesday filing to the U.S. Securities and Exchange Commission, told investors it had less than four days to conduct due diligence given the “emergency circumstances. It estimated a hit of about $17 billion from the takeover.” Indeed, you took over a bank and now will waste $17 billion for doing that because politicians pressured you to do that. Trial lawyers are already gathering and a class action suit is waiting. Modern capitalism: privatize gains, socialize losses.
UBS felt pushed to rescue Credit Suisse “in a deal it did not want,” reports Reuters, citing a U.S. Securities and Exchange Commission regulatory filing. The major Swiss bank said that due to “emergency circumstances,” it barely had four days to conduct due diligence on its smaller Swiss rival. Triggered by a series of bank failures in the U.S., Credit Suisse almost collapsed in March after a rush of “spooked” clients suddenly withdrew their money from the lender. UBS estimates it will take a $17 billion hit from the takeover.
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What a rescue mission! Only to get rewarded with $17 billion hit, and then lament about lack of proper due diligence and pressurized takeover.
The problem is that when they yammer these things, they are neither embarrassed nor ashamed, rather we are meant to appreciate their efforts, and probably praise them for being dumber than required.
UBS will require rescuing soon, because it’s very clear there’s talent deficit at the top echelon.
Lool @ being dumber than required!