Financial perspective
The Swiss government finally matched a historic transaction.The Swiss Bank (UBS) announced that it will acquire Credit Suisse, which is a full shares acquisition and transaction. Each shareholder holding 22.48 shares of CSI will receive a shareholder, equivalent to 0.76 Swiss francram per share.The total consideration of 3. billion Swiss francs (about S $ 4.354 million).The purchase price of 3 billion Swiss francs compared to the market value of Friday on Friday on the last trading day, it was about 40 % off, making CreditEss a history.
There are two issues that have attracted much attention from the acquisition.First, both UBS and Creditions can use the existing tools from the Swiss Central Bank without restrictions.Through these tools, the two banks can obtain liquidity from the Swiss Central Bank according to the guidelines of monetary policy tools; the second is the Swiss Finance Minister Kalin Keller -Sartre said at the press conference on March 19: "ThisIt is a business solution, not rescue. "
Why can both banks use the existing tools of banks in Switzerland without restrictions?Obtaining liquidity from the Swiss central bank may not be willing, but forced.Anyone who has a way, the Swiss Central Bank will not make such subsequent negative impacts.Because, this move is equivalent to releasing liquidity to the market, which will make the future risk of excess liquidity and inflation.
The Ministry of Finance of Switzerland made the acquisition so clean, just to prove that the Swiss government paid a heavy price for this acquisition.Because the central bank's funds endorses with national credit and government interests.Once inflation caused by over issuing currency, not only the financial capital will depreciate, but the government needs to invest more fiscal funds to relieve inflation pressure and balance market prices in order to protect the interests of the people.It will not work.In recent years, the US government is facing such a situation.
Creditkin was founded in 1856 and is the fifth largest consortium in the world and the second largest bank in Switzerland.In 1990 and 1993, the Leu Bank of Switzerland's fourth largest bank and the Fifth largest bank of the Swiss People's Bank of China were acquired.The reason why it is acquired and not let go of bankruptcy is the point where it is too large, so that it can abduct the government.
Knowing that this acquisition has a great risk and does not meet the wishes of investors, but if the acquisition method is not used, the possible consequences will be able to bear it, and it may cause the Domino card effect of the global financial market.Today's global financial market is indeed a bit of wind and rain.Credit Suisse is just a typical case.
In the United States, although the oversized large -scale financial institutions of Lehman brothers have closed down, the bankruptcy of Silicon Valley Bank has caused severe shocks in the US financial market.And the sound is getting louder.
According to the Wall Street Journal report on March 17, there are currently as many as 186 banks in the United States, and there may be similar risks to Silicon Valley Bank.The latest studies jointly released by many university economists have shown that the Federal Reserve's interest rate hike "greatly" increased the vulnerability of the US banking system.Some bank's asset value is even reduced by more than 20%.Once there is insufficient confidence and increased the withdrawal of households withdrawal, it may not debt, facing thunder.
This situation is a severe test for US financial markets, financial institutions, and US governments and financial regulators.While the Fed is paid for its radicals and giving funding to Silicon Valley Bank, if it continues to raise interest rates, what danger will it bring to other small and medium -sized banks really worry the market.The central bank provides funding support for commercial banks. It is undoubtedly digging meat and sores. After replenishment, many scars will also be left; if it is not good, it will make the financial body scar and even ulcerate throughout the body.
From the Federal Reserve to the Swiss Bank, they are all using the method of digging meat and sores to transfusion blood for commercial financial institutions, allowing them to stretch.However, there are financial institutions and financial institutions in some countries, and it is really difficult to predict now.In particular, Credit Switzerland has also reached the point of being acquired, which is enough to explain the global financial market at the moment. It has really heard the sound of tsunami.
In order to cope with the risks brought about by high inflation, the United States and Europe are forced to use radical interest rate hikes.In particular, the United States has adopted the means of violent interest rate hikes, and the low interest rates and "zero interest rates" that appear under loose monetary policy have also made U.S. Treasury bonds "fragrant".It was just in the face of violent interest rate hike policy, this "fragrant" quickly became a bad debt that was pressed on many banks, and the floating loss was very serious.There is no customer crowding. As long as the customer is squeezed, everything can only be dealt with by bankruptcy.Can the central banks of developed economies flow through this quagmire by digging the meat and sores?
The author is Chinese Financial Reviewer
