Comments: Centennial old store Credit Suisse fell ＂violent rescue market＂

Source: Ming Pao

Ming Pao Society Review

In Europe and the United States, a bank has been in crisis. Credit Suisse is eventually acquired by the old opponent UBS at a low price of $ 3.2 billion.Credit Suisse has repeatedly exploded scandals in recent years, with serious investment losses, and customers withdrew a lot of capital. However, when the size of the balance sheet of the balance sheet, Creditses is still twice as many as Lehman's 2008 burst of pot., Switzerland's official this time was almost forcing UBS to reach the acquisition agreement with Credit Suisse.Investors holding additional first -level capital bonds (AT1) have a total of more than 100 billion Hong Kong dollars assets, which turned overnight.Switzerland officially rescue the domestic banking system and does not sacrifice the interests of shareholders and taxpayers, but a large number of international investors pay for it.

Credit Suisse "is so big that it can't fall"

Britain and the United States pay attention to Switzerland intervention

In the past two weeks, the United States and the European banking industry has changed. First, Silicon Valley Bank has not been turning around the pot, and many small and medium -sized banks have been pressured.11 banks headed by Chase deposited a total of US $ 30 billion in deposits to save lives; in Europe, with a 167 -year -old Credit Suisse, it was in a fiscal crisis.UBS acquired, one of the two roads was selected. In the end, UBS Credit reached an acquisition agreement before opening the market in Asia yesterday.

The incident of Creditses has both the problem of poor management and influenced by the European and American central bank policies and even geopolitics.Switzerland's neutral status has a long history. Local banks have long been known for ensuring the privacy of customers. Many wealthy giants of various countries are willing to give money to local banks for care.In the past few years, the bank has repeatedly involved in scandals such as money laundering and tax evasion. Since 2021, it has been closed by loan agency GreenSill Capital, and the American hedge fund Archegos has hit the "explosion", which has damaged tens of billions of dollars.After the Kaishi War of Russia last year, Switzerland stood in the United States to participate in sanctions and confiscated the Russians' local assets for Ukraine for reconstruction.Assets; in addition, the European and American central banks raised interest rates to curb inflation, global economy deteriorated. Credit Suisse loses nearly $ 8 billion in the year. The restructuring plan is not optimistic, and customers have jumped off their customers.In the fourth quarter, the withdrawal of funds exceeded 100 billion US dollars.

Creditkin admitted earlier that the financial reporting procedures in the past two years have "major defects". How big this "financial black hole" is, it is still a mystery.The water throat "does not injected capital and rescue, becoming the last straw that crushes the camel, but the thin camel is still larger than the horse. At the end of last year, the scale of the Credit Calculatory liabilities exceeded 570 billion US dollars.Two times, Silicon Valley Bank, which is only about $ 200 billion in total assets, cannot be compared with.Credit Suisse "is so big that it can't fall". Once the pot is burst, no one dares to guarantee that the financial tsunami will not repeat itself.

The West has advertised a free market economy. However, in order to prevent the outbreak of the cashier industry system crisis, the governments of various countries have "violent" involved and do not leave their hands.Regardless of the acquisition of the British Silicon Valley Bank branch, 11 banks in the United States, and 11 banks in the United States jointly rescued the first and banks, and this time UBS acquired Credit, all helped the government to perform "national tasks".Comprehensive foreign media saying that both Creditkin and UBS had originally opposed the acquisition. Everything was forced by the Swiss government. It was reported that "the government and a bank of a major country" put pressure on the Swiss government and asked to rescue Swiss to save Switzerland.letter.

Swiss officials notified the US -British regulatory agency last Friday, and the merger of the two lines was PLAN A, but UBS focused on the risk of the asset -liability statement of the CITS Investment Bank's business.The letter believes that UBS shots too low, "harming the interests of shareholders and employees", and refused to have the acquisition suggestions.Under the official persecution of Switzerland, there is now a $ 3 billion acquisition agreement. Some US media are metaphorized by the "Shotgun Wedding" metaphor. Although the man is unwilling to marry and the woman does not want to marry, the parents are vigorouslyFor pressure, the two sides can only answer.

Ten billion Hong Kong dollars bonds become waste paper

International investors feel deceived

After the acquisition case was announced, Western officials welcomed them. The Lehman -style storm was temporarily avoided, but the problem of systematic risk was still attracting attention.On the one hand, the rotten stall of Creditses is to be figured out. After UBS acquired Credit, UBS has become a superbum bank.Can be saved.On the other hand, according to the content of the acquisition agreement promoted by Switzerland, Credit Suisse's additional first -level capital bonds (AT1) value of about $ 17 billion returns to zero overnight.Also to be observed.

After the financial tsunami and the European debt crisis, Western countries improved the requirements of bank capital. AT1 bonds were the products born in this context. It is a secondary bond that has been approved in the bank's capital level.Generally speaking, in case the bank fails, the rights and interests of bond investors will be preceded by shareholders, but AT1 bonds are not.Under the financial crisis, many western countries were "rescued and not saved people". The design of the AT1 bonds was to pass on some of the loss risks of the bank when they passed the bank."Being a full supervision reform" and "a sound banking system", investors buy AT1 bonds, and most of them have never thought that it will really become waste paper.

Although Spain had a burst of small and medium -sized banks before, it caused the AT1 bond holder to suffer losses, but the scale was relatively limited.Large dial.The most anger for investors is that the Swiss official here wants them to "lose light and pass". The employees of the Chamber of the Chamber that are reported to continue receiving bonuses, and the holders do not need to eclipse the light.At present, the overall size of the AT1 market has reached US $ 275 billion. After this battle, investors feel deceived, and confidence in AT1 bonds must be greatly reduced. It is difficult for banks to rely on AT1 bonds to quickly fill capital in the future. Global financing costs may also be pushed up.The respect for the market in Western Free Economic Markets, respect for private property rights, etc., are all the "dramas" of the Taiping period. Once the crisis comes, the self -rescue of various countries will be adjacent to the neighbors.Not the last time.