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“This just makes no sense”: European regulators rush to calm AT1 investors after Credit Suisse wipeout shock

March 21, 2023 -

(Article by Tyler Durden republished from ZeroHedge.com)

On Sunday, something similar happened with Credit Suisse when, much to the shock of Europe's $275 billion Additional Tier 1 market, some $17BN in Credit Suisse AT1, aka Contingent Convertible, bonds were wiped out even as equity holders received over $3 billion in consideration from UBS courtesy of Swiss taxpayers who ended up footing billions in contingent liabilities.

Not surprisingly, this morning ...

UBS $3.2B takeover of Credit Suisse wipes out AT1 bonds, proves bank bonds are more risky than previously believed

March 22, 2023 -

According to CNBC, the Swiss Financial Market Supervisory Authority (FINMA) broke the news. This effectively rendered AT1 bonds worth 16 billion Swiss francs ($17.35 billion) worthless, while shareholders will receive payouts as part of the bail-in. CNBC added that the deal between UBS and Credit Suisse was inked on March 19 with the "help of Swiss authorities."

Also called contingent convertibles, AT1 bonds are debts that are considered part of a bank’s ...

Swiss defend $17BN AT1 bond wipeout in Credit Suisse deal as furious creditors including David Tepper vow to sue Switzerland

March 26, 2023 -

(Article by Tyler Durden republished from ZeroHedge.com)

Sunday's shocking bail-in, which rendered $17BN of investments worthless, has become one of the most controversial elements of the shotgun marriage between Credit Suisse and its larger rival, UBS, brokered by Swiss authorities. Just hours after the deal was announced, other large market regulators began to distance themselves from the decision, fearful that it would endanger banks’ ability to raise capital ...

Credit Suisse merger with USB could destroy Western bond market after bank zeroed out BILLIONS in bonds

March 23, 2023 -

According to analysts cited by Bloomberg on Monday, the proposed merger between Switzerland's two largest lenders, Credit Suisse and UBS, could have an adverse effect on the entire Western bond market, Russia Today reported.

On Sunday, UBS announced its acquisition of Credit Suisse, which was on the verge of insolvency due to a loss of investor and customer confidence, for 3 billion Swiss francs ($3.24 billion) in stock. The Swiss government, which brokered the deal, provided ...

Give your aging body a break: Older adults should avoid a high-salt diet

June 06, 2018 -

According to research, as humans and animals age, they find it harder to control their sodium and water retention, thirst, and urine concentration. Data from an article published in the American Journal of Physiology—Regulatory, Integrative and Comparative Physiology determined that age can greatly hinder the capacity of rats to eliminate excess sodium when fed a high-salt diet.

The results of this study can be used to analyze how salt consumption can affect the elderly ...

US bondholders preparing to sue Swiss government over wipeout of $17 billion worth of Credit Suisse bonds

March 24, 2023 -

Swiss bank Credit Suisse was sold to one of its main competitors, UBS, in a sale brokered by the Swiss government. As part of this deal, UBS was forced to pay out $3.25 billion to shareholders. But the government also used an emergency ordinance to write down the value of the bonds to zero. (Related: Credit Suisse merger with USB could destroy Western bond market after bank zeroed out BILLIONS in bonds.)

These bondholders own securities that are known as Additional Tier ...

The Jim Price Show: Planned financial collapse seeks to put all banks under one controlled “umbrella” – Brighteon.TV

March 28, 2023 -

"This is one of the problems we're seeing with the credit and banking industry. They are warning that a lot of these banks will fail because they want to put everything under one umbrella and then that way they can control what you can spend your money on,"  he said during the March 20 episode of "The Jim Price Show" on Brighteon.TV.

"This is a purposeful collapse and the central banks want all this to happen so you get scared, and would make your money disappear."

He ...

Shares of Deutsch Bank tumble after cost of ensuring its default spikes as global financial meltdown continues

March 26, 2023 -

On Friday, Deutsche Bank shares experienced a decline after a surge in credit default swaps the night before, as worries over the stability of European banks continued. The stock, which is listed in Frankfurt, plummeted by 14 percent at one stage during the session but managed to reduce its losses and closed 8.6 percent lower on Friday afternoon, CNBC reported ahead of the weekend.

Investor concerns of contagion were exacerbated on Wednesday by the U.S. Federal Reserve's ...