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@leveltwotrading9657

Жыл бұрын

MY GUY HAS SOME GOOD INFO BUT acts like a ROBOT ai DOES EXIST

@TheseNuts2

Жыл бұрын

Is there an ethics problem when they lie to people like that? Any recourse?

@Falconlibrary

Жыл бұрын

Expecting bankers to fix the banking system is like hiring the town's worst arsonist to be the fire chief.

@JohnDoe-kg6gy

Жыл бұрын

Why no mention of Credit Suisse woke policies including his gender fluid CEO? I love it, everything woke turns to shit.

@GEB-yy3ud

Жыл бұрын

I only signed up out of respect Sensi.

This is a terribly sad day, Patrick will no longer have opportunity to mock credit suisse future displays of incompetence. 😢

@awdrifter3394

Жыл бұрын

He'll have to switch to UBS.

@volvo09

Жыл бұрын

Noooooo! Not credit suisse!

@chrispowell1224

Жыл бұрын

Dont worry, the shit show that is Deutsche still exists.

@hkchan1339

Жыл бұрын

Don’t worry, human stupidity has no limits. Patrick will have plenty to mock in the future

@HatelivesNextDoor

Жыл бұрын

An idiot is born every day, and patrick has a fantastic ability to find us the most entertaining. Have faith! Just remember: "Its going up because I am buying😂"

I can't believe Patrick bullied them into bankruptcy.

@shikharraje

Жыл бұрын

Patrick Boyle cancels Credit Suisse 😂

@rhs5683

8 ай бұрын

All they deserved. xaxa

We can only imagine how joyful and enthusiastic are UBS employees now they're looking in Credit suisse books and finding the wonderful legacy they'll have to manage in the next few months to save their own job.

@lordphonix0994

6 ай бұрын

a fate worse then death

@picketf

4 ай бұрын

UBS employees didn't have to go over the books on their own. It was implied that through the transition phase CS employes would have to tie up loose ends to earn their severance packs. That and writing resumees. As an independent contractor I barely escaped alive. The hedge elders suposedly became coffee boys at Julius Bear.

"Here is a chart of these bonds. They went to zero." Hahahha

Any bank deemed too big to fail should immediately be broken up.

Wow, I didn't realize that there are people on KZread who discuss finance at this level and with such clarity at the same time. Thanks for the entertaining and insightful video 👍

@RabianskiT

Жыл бұрын

That level of professionalism is to be expected from Patrick. Do yourself a favor and watch his ENTIRE channel - it’s an encyclopedia of financial knowledge, told in a smart, funny and engaging way ❤

Amazing commentary as always with a generous dose of sarcasm. Does Patrick use a teleprompter? His delivery is articulate, friction free and relaxed at all times.

@nicholaswoollhead6830

Жыл бұрын

He does, you can tell by his eyes when he records videos closer to the camera. I assume Boyle is the type of guy to delete a video if he discovered a mistake, so he plays it safe which I appreciate.

@mokotedimogadime8567

Жыл бұрын

Yes he does, he mentioned it before.

"This is no bailout !" the Swiss finance minister was quoted as saying at 11:06 . This is what we prefer to call: "A very large bilge pump." 😜 Thanks for the video Patrick ! This episode was another fine example of how chasing bond yields can be an excellent way to get the same risks as equity investments but with a nice cap on their potential for gains.

As a brand new UBS share holder, I’ve got a 50% haircut to recoup. Let’s go UBS, there’s an entire world full of shifty financial deals to be made. 😜

@nmccw3245

Жыл бұрын

… and I expect my Toblerone.

@benchoflemons398

Жыл бұрын

It’s a hell of a lot more than a 50% haircut, right? Like at least 80%

@mastercommander4535

Жыл бұрын

As a bond holder my haircut was 100%

@nmccw3245

Жыл бұрын

@@benchoflemons398 - I got in for under two bucks a share.

@YungPickleDaSour

Жыл бұрын

@@mastercommander4535 sounds like a beheading more than a haircut lol

reminds me of McDonnell Douglas/Boeing deal, where the people who ruined McDonnell then inserted themselves into Boeing and then ruined that. IMO UBS just poisoned themselves.

@Jim-Tuner

Жыл бұрын

I would agree. This will end badly and the country will be forced into an even larger bailout.

@themsmloveswar3985

Жыл бұрын

Now the same clowns are ruining Washington with corporate lobbying.

@antoniofernandesmarchetti1097

5 күн бұрын

That aged like Fine wine, which is terrible!

Excellent video Patrick. As an experienced Swiss banker living in Switzerland I found your message comprehensive, well balanced, and I learned the fundamental reason why AT1 bond holders could be treated worse than equity holders. As I don’t invest in this type of instruments I didn’t take the time to go analyse the question but you clarified for me a central legal question. Thank you.

I seriously love the idea of the AT1 bonds being paid to high-level execs instead of most of the cash. Maybe give them a 10 year maturity instead of 5 and you've got the perfect motivator to run the bank well in the long run - run the bank well and you'll get solid interest payments AND the principal eventually. Run it into the ground and the most you can get is a couple year's worth of interest payments.

@pettahify

Жыл бұрын

This!!!! Yes, this is EXACTLY what is needed. ALL bonuses paid with AT1 bonds. But then, of course, all regulators and all AT1 bonds should be treated exactly as they were now.

@vinniechan

Жыл бұрын

On the flip side AT1 does pay a high yield like 9%

@sblijheid

Жыл бұрын

You would probably not get good management. They want secure incomes too.

@CHR1SZ7

Жыл бұрын

@@sblijheid bonds like this do provide a secure income for management provided they do their job properly

@tolep

10 ай бұрын

@@sblijheid They can sell the bonds, as I understand it.

I really enjoy Patrick's more humorous and yet accurate take on topics. The tone is way better than a years ago when he just explain things without the humor. I notice the change with humor when he started explaining FTX collapse.

@simony2801

Жыл бұрын

Well you either laugh or cry when you hear of the largesse given to bankers.

King's student, here. I really appreciate you taking the time and having the drive and initiative to post your video at about 2am, Professor. I am an undergrad' in Molecular Genetics, and your teachings are my toolkits and further inspiration to becoming competent in the financial world.

@draconianregiment4925

Жыл бұрын

You get to have actual class with Patrick? I'm jealous lol.

@putinski666

Жыл бұрын

There are finance related subjects along with something like molecular genetics? 🤨

@retinapeg1846

Жыл бұрын

@@putinski666 probably something like computational finance. I did a course in stochastic analysis of derivatives in my masters in physics.

@putinski666

Жыл бұрын

@@retinapeg1846 I can still wrap my head around stochastics and physics. But my head just cannot mash together the OP's subjects lol. Would love to hear more about them.

@huberticusrex

Жыл бұрын

Cringe

Lmao, i cant get over how happy Patrick looks in the Thumbnail Next to the text "The end of Credit Suisse!"

I bet Patrick has known this video has been coming for a while

@whannabi

Жыл бұрын

The research has been done and he was just waiting for articles to come out just to be sure.

@michaelvick2872

Жыл бұрын

Considering how badly he shit on credit suisse last video he might’ve actually helped their demise lol😂

@martinleepgg

Жыл бұрын

​@Michael that's a shade harsh

@mikatu

Жыл бұрын

Everybody knows CS is having problems for many years. Not just them but UBS is the same, but CS is incredible worse.... even the CEO was the laughting stock of the banking community.

really funny that bankers and VC bros are acting like interest rate risk management is an alien concept

@sblijheid

Жыл бұрын

Why not? If ypu know that biden and the Fed will bail you out, life is great. Keep on partying.

It's a tragic day indeed, We've just witnessed the death of a financial meme. R.I.P. Credit Suisse 1856-2023 †

Swiss Regulators have already stated all employees, incl management will get 0 due bonuses (cash included). While I praise this, expect the best and brightest to be going elsewhere quickly. I expect the Credit Suisse brand to become a retail banks and split off, along with other unwanted parts and the crown jewels to be brought into UBS proper.

Professional investor: “What?? Zero? Who reads the fine print??”

@gigikontra7023

Жыл бұрын

What, Swiss insolvency law modified on a Sunday by emergency decree invoking war-time exceptional powers to allow wipeout of AT1!😂

@scottcameronpedigo219

Жыл бұрын

@@gigikontra7023 Nope. The AT1 were wiped out exactly according to the terms in the AT1 contracts. What was done in emergency fashion on Sunday was forcing a takeover without allowing a stockholder vote by either bank.

@gigikontra7023

Жыл бұрын

@@scottcameronpedigo219 read the docs, man, then come and talk to me. Thanks

As always, I had been looking forward to this video on the shotgun marriage of UBS and CS. It is by far the most informative of any I've read or watched, especially the CS AT1 bond, which no other financial media has detailed as Patrick does. When you get close to 10% of annual return on a bond, you have no excuse to complain when you are wiped out as you chose to ignore the prospectus.

@Jim-Tuner

Жыл бұрын

The bondholders should be expected to be wiped out in such circumstances, but it was the decision in this case to wipe out the bondholders while not wiping out the shareholders that was controversial.

@GameplayerCanal

Жыл бұрын

​@@Jim-Tuner I really don't get it why... The Shereholders got screwed as well, the bank was spelled by a fraction of it's value, they lost money just not all of it like bondholders. And I can see why, the bondholders where receiving 10% a yr exactly because of the risk, while shareholders expect that the bank would grow, they both got it wrong, but at the end the bank was still valued 3bn (money that goes to the Shareholders) while the bond got downed to zero (exactly what they are made for)

@Jim-Tuner

Жыл бұрын

@@GameplayerCanal I think in retrospect the objection was calling what in reality were structured products "bonds". They never really met the definition of what a bond is and should not have been marketed as such. Words should mean things. And what was sold here was in no sense bonds. People buy high-yield bonds all the time and there is a general understanding of how those risks work. These "bonds" were more like unsecured loans being made to the bank.

@pettahify

Жыл бұрын

​@@GameplayerCanal Yeah, 10% is veeery nice, and as such, it comes at a price

@ComradeOgilvy1984

Жыл бұрын

@@Jim-Tuner "These "bonds" were more like unsecured loans being made to the bank." A not unreasonable perspective, but unsecured loans are generally senior to the stockholders. So these "bonds" are specifically the least secure investment, less secure than unsecured.

These AT1 bonds followed the universal rule that "risk is proportional to gain." Another universal rule that applied in this case: "Read the fine print." 😉 Great video.

7:00 "He does have one of those $8 blue ticks though, so it's probably a legitimate offer" Holy shit that was so dry and so funny

The blue-tick roast of Justin Sun is just why we love Patrick so much!

Patrick is having a field day with this one look at that thumbnail lmao

Timely updates on a quickly developing banking crisis. Thank you!

yes, it was a bit like watching monopoly. In the Swiss version there is the Paradeplatz. Who can buy this, usually wins the game.

Fun fact. Toblerone is not Swiss anymore and they have to remove the mountain with the bear from their boxes :)

The problem with regulators is they claim people should trust them while simultaneously claiming they have to lie to people for the greater good.

@alexanderSydneyOz

Жыл бұрын

Come on.. regulators are as transparent and open as they can be. But they are there, among other things, to help prevent disasters, and saying on Wednesday "if we don't arrange a forced wedding with UBS over the weekend, CS is cactus", that could have created an unmanageable disaster for everyone.

@laurent3415

Жыл бұрын

Their job is to walk the fine line between the truth and mass panic. Tell the people enough, but not so much that it triggers a snowball effect of a panicked population.

@indian9632

Жыл бұрын

Never trust any gov organization

@paulgibbon5991

Жыл бұрын

"People are smart, they could handle it." "A person is smart. PEOPLE are dumb, panicky, dangerous animals, and you know that's right." --Men In Black

@laurent3415

Жыл бұрын

@@paulgibbon5991 OMG, that was the quote I was looking for. I couldn't remember the movie it came from for sure.

Banking sandals will just not be the same without Credit Suisse

@garygarside9782

Жыл бұрын

is soft bank still around?

@gerhard7323

Жыл бұрын

Were Credit Suisse big into footwear?

@jasonhaven7170

Жыл бұрын

Don't worry, there's plenty of other European and American banks to watch.

@scottcameronpedigo219

Жыл бұрын

@@gerhard7323 There were a lot of crocks. Crocks of what I won't say.

Never knew about 'AT1' bonds, they never mature, but pay a substantial yield, and can be written down by regulators for a variety of reasons. Talk about High Risk bonds

"Switzerland needs to be aware of its responsibility beyond its own borders".... I really don't know how to handle this statement

@BlackJesus8463

Жыл бұрын

It's good business.

@Pushing_Pixels

Жыл бұрын

They have a responsibility to money launderers everywhere.

@sblijheid

Жыл бұрын

It sounds like something you would say in an election campaign and have all your brain dead constituents scream: "YEAH."

I know you had fun making this one lol. Now I’m waiting for Duetche Bank and SoftBank because of course they’re involved.

@Arigator2

Жыл бұрын

I'm waiting for the inevitable collapse of Binance. Maybe it will be around Halloween because there are so many skeletons in that closet.

@CaptainRon1913

Жыл бұрын

@@Arigator2 Really, How do you know? Please do let us in on your "skeletons in that closet" expertise

@Arigator2

Жыл бұрын

@@CaptainRon1913 because I'm not an idiot. It's obvious. It's an obvious ponzi scheme.

@themsmloveswar3985

Жыл бұрын

Indeed.

@PointsofData

Жыл бұрын

​@@CaptainRon1913 "Aside from the latest CFTC lawsuit, Binance has been under investigation by the Department of Justice since 2018 for allegedly flouting U.S. compliance laws, anti-money-laundering rules, and sanctions."

This is definitely my favourite AI generated character.

@LinkinPark4694

Жыл бұрын

Was looking for this comment…

@Dstew57A

Жыл бұрын

Your fucking rude ..imbecile

@Honestly__now

Жыл бұрын

With ironically and undoubtedly more heart, wit and knowledge than a lot of extreme creeps like chamath

@benchoflemons398

Жыл бұрын

💀

@craiggillett5985

Жыл бұрын

Saves time for him I guess - put the doppelgänger’s to work

I remember studying in Geneva and passing by the Cornavin station every so often. Credit Suisse and UBS weren't across from each other but were located on opposite ends of the station. I had to pick a bank account and UBS happened to have a deal for young people so I took it. I feel quite lucky making that decision but it will be shocking seeing CS disappear, and even then I am concerned about the potential UBS monopoly.

@kenyanswiss

Жыл бұрын

But it will be good for the cantonal banks. UBS has crazy charged so small and middle size companies might suffer. CS was more business friendly

Thanks for the explanation on why the bondholders got wiped out. I was wondering how it was legal and what the purpose was, and you answered both questions handily!

Same happened here(India) with AT-1 Bonds of Yes Bank.

@Confucius_Says...

Жыл бұрын

When did this happen?

@sumitroy3483

Жыл бұрын

​@@Confucius_Says... 4 years ago.

Patrick, your explanation is waaay better, than what the whole swiss media have covered. Unbiased, detailed and covering everything important. Thank you!

@Monsterpala

Жыл бұрын

Well it is not in the interest of the media to explain things or stick to the truth. That doesn't pay but gets you demonitized or shut down. But Patrick is still far better than any other finance yt I know, explaining why at1 was written down, others missed the 9% and involved risk and made it sound like poor investors and the public was holding all the bonds.

Thanks to our growing list of Patreon Sponsors and Channel Members for supporting the channel. www.patreon.com/PatrickBoyleOnFinance : Paul Rohrbaugh, Marc De Mesel, Nate Stapleton,Timothy Baird, WIlam, Hernan Merino, Random Encounter, Nieuwsbrief Ikwil, Bee Positive Consulting, hyunjung Kim, John Cadena, Ian Tracey, Callum McLean, Oscar, Simon Pena, Ed, Pavle Obradovic, Erik Van Ekelenburg, David O'Connor, Pjotr Bekkering, Alex, Robert W Proudfoot, Robert Muller, Andre Michel, Ivan Iliev, Gopaljee Atulya, Mark Hooker, Artem Vasenin, P H, Sebastian, Michal Lacko, Peter Bočan, Michael Pierce, V Jordan, Gil, HalfwitHam, Mark Brophy, David Urdenata, Juan Valdez, Bruce Roberts, Chad Norman, Bruce Roberts, Shamikh Rana, Friday Guy, Marc De Mesel, Augusto Ramos, Soy Boomer Doomer, Bob Slartabartfast, Robert Feiler, Camil Dbouk, Erik Montesinos, Matthew Loos, Az Indragiri, Aman Bali, Lautaro Parada, Pratap, Deborah Joseph, Robin Sung, Kurt Johnston, Dominik Auerbach, Gurmeet Kaushal, John Hall, Dara Mo, Josef Goergen, Wilbert Cheng, Jaroslav Tupý, Trevor Lucey JB Weld, Alex, Carlos Figuera, Peter Pomelov, Null065, Rick Thor, MeBerzerk, Henry Nguyen, Sola F, The Collier, Carlos Mejia, J Wadia, Bitcoin OG, easy boekhouding, Albert, Eugene Jung, Daniel Cervini, Jonathon Yong, Iris Ji, Emil Nicolaie Perhinschi, Charles, Eli Auto, Excks, Michael Li, Par Hedman, Praveen Mishra, Gerard Scott, joel köykkä, Areeb Ahmed, David Wang, Rodolfo Cornetti, Daniel Winroth, johnny, Nick Jerrat, Chris Houston, Alastair Currie, Robert Griffin, Andrei, zizi Golo, Fab Vida, Constantin Petrenco, pawel irisik, NotAScam, James Halliday, 22 Dust, Carsten Baukrowitz, Heinrich, Arron T, Ben Brown, Stephen Mortimer (to The Moon), Ryan B. 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It's not a bailout we needed to protect the public. = It's not a ransom but we had to save the children who were kidnapped.

@taffinjones8641

Жыл бұрын

that's actually a surprisingly good way of putting it lmao. It's fucked to cover the banks asses, but if you don't the financial fallout would be horrific

@thomasherrin6798

Жыл бұрын

It's not a bailout, it's a bailin, it's all Swiss!?!

@JohnDoe-kg6gy

Жыл бұрын

It pisses me off. If any of us screw it, then we have to deal with it. In contrast those woketards get all kind of help of mommy government through our taxes.

@mikatu

Жыл бұрын

A bailout saves the company..... in this case the company no longer exists and was absorbed by a different company. In your shitty example the ransom would be to pay for a different child??? It is still a child, right? Makes no sense to call this one bailout when the company ceases to exist. And don't get wrong, UBS is going down next.

@oneukum

Жыл бұрын

Well, it is less of a bailout if shareholders and bondholders need to bleed. Thinking of bailouts as a binary option may utimately not be helpful.

I like it better when you're sitting at the desk. Thanks for the show.

We live in strange times when the risk comes from bonds.

@Jim-Tuner

Жыл бұрын

Words like "bond" used to mean something. Not anymore.

@puma7171

Жыл бұрын

Bonds are supposed to be risky in the event of a failure. Btw Equity holders also were de fact wiped out (-90% over a year)

Sometimes it's good to read the fine print (these specific AT1 bond contracts) before signing and not just assume they are like AT1 bonds elsewhere... before this information I was wondering how Swiss authorities can just do something like this (favor shareholders) but now makes sense if it's all in the contracts.

@gigikontra7023

Жыл бұрын

So you think it's ok? Because apparently the insolvency law was modified by war emergency powers on Sunday to allow this even to be called a PONV. Or is this not a thing?

@saralotti7174

Жыл бұрын

So you think an “emergency use approval/agreement was awarded in error? Maybe based on fraudulent data? That has a familiar ring to it…😏💉💵

Damn, another video? Patrick's posting frequency is bearish... if he starts posting every day the bottom is near. This is Patrick's ultimate recession hedge: The more things go to shit, the bigger this channel gets. Brilliant way to diversify... better than gold!

3 things I want to say: 1. Thanks Johnny Sins of finance for this very well coverage of the Late Credit Suisse. 2. Anyone who goes pass CS office, please lay some flowers for them. 3. This time, CS AT1 holders are the sucker at the table.

@LumenMichaelOne

Жыл бұрын

cs Deserves No 💐

​If the Saudi National Bank is unhappy - we all winners. I loved that they zeroed out the "cheater" bonds.

@faceclutch5555

Жыл бұрын

You live off of the PetroDollar.

@rhetoric5173

Жыл бұрын

Saudis give value to paper

@abdelrhmandameen2215

Жыл бұрын

Why is that? The Saudi investments are what are keeping many financial markets viable.

@boxtodragon

Жыл бұрын

How the hell does that make anyone a winner when a government wipes bonds? It's a shitshow meaning we are going to get more government that will green lit this dumpster fire.

@rhetoric5173

Жыл бұрын

@@abdelrhmandameen2215 nothing to be proud of. Should have their own currency backed by oil.

What boggles me is the logic here - bond holders only lose if the business is mismanaged, but shareholders are protected, yet only shareholders can impact or oversee the operations of the business. Even without a vite, shareholders have internal access and can represent themselves at general meetings but bond holders just sit outside and wait for the professionals to release the selectively redacted minutes at best.

@Jim-Tuner

Жыл бұрын

The problem is that a particular product was called a bond when it was really no such thing. Words used to mean things.

@TheHesseJames

Жыл бұрын

If a bank pays you more than 9% interest, it may be a hint that something might be different with this security.

@gigikontra7023

Жыл бұрын

​​​@@TheHesseJames so it's not a problem that the insolvency law was modified in a Sunday by invoking war time powers to allow the wipeout of AT1? 😂

@TheHesseJames

Жыл бұрын

@@gigikontra7023 no "war time powers" have been invoked. That's just nonsense. The "Notrecht" and/or "Dringlichkeitsrecht" have been used because there was no time to do it the ordinary way. And it will be done the ordinary way later on.

@IamGrimalkin

Жыл бұрын

@@gigikontra7023 It wasn't. It was always in the contract of the bond. Watch the video again. The bond explicitly states it can be zeroed at the whim of the regulator, or when CS receives extraordinary support from the public sector, without which they would become insolvent (which is what happened, UBS wouldn't have taken the deal if it wasn't for the public sector). If people didn't read the terms of the bond, that was their own problem. The emergency law thing was nothing to do with the bonds and was instead the forcing of CS and UBS to merge without a shareholder vote.

The bond being wiped is fine in and of itself, given that's how it's written. A high yield high risk product is perfectly fine. I don't like that it's called bond though, as that's not what we typically consider bonds to be. This is somewhat mitigated by the fact that it's only available to institutional investors who can and should look beyond the name, but it's still a bad name.

I came to this channel for the insightful commentary on financial matters with an occasional dash on humorous remark throw in, but I stayed for the avant garde lighting techniques.

'Here's a graph of those bonds...(graph looks like a cliff) they went to zero' I nearly fell off my chair laughing. Patrick is both informative and entertaining.

Excellent summary of the negotiations between the two banks. A lot of coffee and pizza kept people going,

Always enjoy your podcast. Thank you so much for all the effort, energy, and delivering concise, and relevant news!

Very much appreciated to have a Anglo/European perspective done with detail - thank you for this PB.

The toblerone bit had me laughing out loud! You are a comedic diamond in the rough, Patrick!

A minute of silence on the untimely demise of Debit Suisse... Thereby robbing Patrick of a lifetime of comedy material 😂

I think the most interesting thing about the AT1 write down was that it was a tacit admission by Swiss regulators that this was a bailout. They didn’t want to call it a bailout but they wanted the $17B more.

@thomasherrin6798

Жыл бұрын

By not paying the AT1's it is not a bailout, but by giving the Shareholders a 60% 💈, it is a bailout, they have also guaranteed 10 billion or so in loans to UBS but that seems a good trade off compared to continued support for Credit Suisse which would have been more costly with any further delays, so it's the shareholder issue that's the problem!?!

@hemaccabe4292

Жыл бұрын

@@thomasherrin6798 My comment is not evaluating the soundness of the policy, though, in fact, I’m not in favor. Just the hypocrisy of the Swiss government trying to hide the truth, that this is a bailout. I appreciate your position, but disagree. Haircuts happen all the time in mergers. The lack of an opportunity to vote by the shareholders is another sign this was a bailout.

@alexanderSydneyOz

Жыл бұрын

People just love claiming this or that is a "bailout", but this deal is not a "bailout" in any sense. If anyone thinks otherwise, go ahead and give a definition of this emotive, rubbery, never-defined expression. The essence of "bailout" as usually used, is having public funds being transferred to individuals or corporations. That has not occurred here. Nor does favoring one type of investor over another constitute "a bailout", not least because the terms of the bond specified it. Nor are loans or loan guarantees "bailouts", and for the same reason. Perhaps the OP could state what truth was hidden by FINMA?

@ProfAzimov

Ай бұрын

​@@alexanderSydneyOz Taking on risk is considered a bailout.

AT1 treatment seemed punitive and haphazard. This "protection" will need to be reworked.

Patrick's thoughts about Credit Suisse: "Oh no! Anyway..."

What a great explanation of what happened and is happening around this event. I learn an enormous amount from you videos that would otherwise pass me by. Far better than any other commentator or news outlet with added sarcasm. Thanks

having worked in It in the banking world, I have never heard anything but the Swiss banks are basket cases from colleagues that have worked there over the last 40 years.

Yes, but will ubs begin selling flip flops? The market won’t settle till we know this.

Bond holders can partially recoup their losses by converting CS offices into luxury timeshares.

This sounds eerily similar to the BoA acquisition of Merrill Edge.

@c0ttage

Жыл бұрын

did boa become the largest bank in the us after that? genuinely asking at the very least, it wasn't a monopoly after

Patrick, you look positively radiant in this lighting

@davidjma7226

Жыл бұрын

It's funereal, to mourn the death of CS.

I don't like it when governments force organizations to act against their own will. Tell a bank "do this or fail", sure. But threatening to remove a board of directors does not sit right with me

I always look out for your video in anything happening in the financial world. So so glad that you are making these amazing informative videos with simple explanations so that even the retail investors and common masses can understand what is happening behind the scenes of financial jargon and difficult concepts.

The worst part about this whole situation is that Goldman Sachs is still doing great, despite being almost just as scandal stricken as Credit Suisse.

@dhvanitdesai1044

Жыл бұрын

Aye but GS doesn't lose money on every scandal like CS did, on the contrary, they manage to make money

@Agnemons

Жыл бұрын

Please get the name right. It's "Goldman Sucks".

@aredub1847

Жыл бұрын

well they get a pass for the lack of the nazi gold connection.

@firesideshats

Жыл бұрын

Yeah that's because the yanks don't have any rules against there bullshit. Problem is they sold any power off with Reagan so nothing will happen unless the yank populace drags there exec and other high ups into the street.

@dannylo5875

Жыл бұрын

They technically have more competent managers.

Disturbing on many levels, but for me what hit home was tech, a field which I have worked in for about 16 years and have just - happily - left. What really was tragic about tech was its financialization. So many companies more concerned with either an IPO or an inflation of their stock price than they were with creating value and solving problems. It led to all kinds of toxicity on the small scale, and lots of wasted money and talent on the large scale. But now I have come to understand that the reason tech has become like this is that it's a place to park cheap money.

Pat...your presentation is the best, clear and concise

Patrick, you should be given an award for outstanding public service. Seriously.

Just discovered your channel today, Mr. Patrick. Thanks for the insight and helpful explanation of this situation. I also subscribed

What effect will the suddenly crashing AT1 bond prices have in other countries, particularly Asian banks? It can't be good.

I bet UBS & Credit Suisse were peaking through the blinds at each other. 👀

Thank you, Patrick, for a very informative lesson. I was starting to get worked up about the treatment of CS's bond holders, but now that I know that the terms and agreements reserved these rights for the company I feel better. It's also a good lesson for us all: read the terms and agreements. If you don't want to get spanked like the Credit Suisse AT1 bond holders have been spanked, don't sign the agreement that makes it clear that a good spanking is one of the things you are agreeing to! 🙂

Employes bond options were zeroed. This morning in all Swiss newspapers. But only ones that were not yet paid out... So (for now) the already payed out ones that also contributed to high risk taking are not affected.

Is Kevin O'Leary about to start handling media for Credit Suisse execs?

first blink @ the 6m34s mark.

@ohioplayer-bl9em

Жыл бұрын

🤔🧲🤫

Wow, just wow ... thanks again Patrick for your analysis. BTW, I prefer this lighting used for the episode. Happy days all 🙂

Love this channel, learn so much from Patrick.

I learn more with Patrick than going to school great video, like always shareholder lose their investments/ incompetent executive's get paid 🤷‍♂️🤦‍♂️

- Saudi: We're not gonna hold more than 10% stake. Nah CS will be fine & we're not saving them. - (Regulators stepped in and forced a crazy deal.) - Saudi: Wait wait wait that cannot happen!!! Don't accept that.

Did anyone read the small print before buying? "Some investors just choose to ignore it," an expensive oversight. Very surprised shareholders were not wiped out first though.

thanks for giving more insight into this turbulent deal.

My parents (not domiciled in Switerland which is CS's home base) both had CS accounts a few years ago with about $US 400,000 combined funds in them. A CS rep' came all the way from Switzerland to discuss with them and dozens of other CS account holders in my country that unless they had $US 1 million in their accounts, CS were going to have to close all these accounts. Their accounts were very soon closed. Thousands of offshore CS clients had their accounts closed because they had less than $US 1 million in them!! Well CS you are a bunch of muppets without a doubt. You shat on thousands of your clients and karma has come back to shat on you.

@michaelimbesi2314

5 ай бұрын

But of course. Credit Suisse doesn’t want to launder money for just anybody, they want the whales :P

@tolep

5 ай бұрын

As Patrick mentioned in other video, dealing with US customers is very costly for any bank in the world.

I always find your insight very helpful. Thank you, Patrick.

Wow Patrick keeps getting better and better, keep it up !!!🙌🏾🙌🏾

I really enjoy this guys content tho! Even though I’m angry about banks, I am grateful that Patrick is taking the time to explain it to us

@orionh5535

Жыл бұрын

Thatd be a smart way to do it. Maybe hes just good at memorizing his script.

So with UBS obtaining indemnity for the legal liabilities of Credit Suisse, does this merger leave their potential claimants of any damages no legal recourse in the jurisdiction in which this indemnity was granted?

@none3763

Жыл бұрын

no. indemnity means the swiss govt pay the legal liabilities and not the new ubs/credit suisse. patrick said the deal is that ubs/suisse is liable for the first 5 billion, and the swiss taxpayers pick up the next 9 billion after that.

@Finderskeepers.

Жыл бұрын

UBS only have an indemnity not Credit Suisse or any other broker , so any claims against Credit Suisse or brokers are payable ASSUMING a claim is accepted failing which a ruling by a court with jurisdiction, thats my understanding of the deal. Time will tell, the Swiss government could make a new law as they threatened and obviously claims are expected with 9bn in the budget, hence the indemnity.

@briankrebs7534

Жыл бұрын

@@none3763 lol nice, they're not even playing the "okay I'll just pay the fine" game anymore. "You'll pay my fines..." Appreciate the answer.

Brilliantly done. This is suddenly my go-to channel for financial news. Governments and banks seem to be equally crooked. Which I think I knew already, sadly.

Thank you for another really interesting video! You really help all of us with these explanations of financial events.

My dad worked for Wells Fargo when it absorbed Norwest. It is amazing how much of the scandals can be traced back to that merger. I feel like Credit Suisse is going to be a similar thing for UBS.

Every bank that failed was born from "formal negotiations"... so, do financial authorities really think they can restore confidence in anybody younger than 50? I'm in my mid 30s and this is the second financial crises involving tax payer bailouts my adult life. I'm just glad I'm Canadian... oh wait, i do have some confidence in banking, too bad Canada is known as a "banana republic" for our draconian government powers that make such regulations. Edit: a rant does feel good😅

@michaelearlgrey

Жыл бұрын

Truth! I'm 30. I have zero confidence I'll ever see a dime of social security. I cash out my retirement funds and take the penalty every time I leave a job. It's 10% today or 100% eventually. The currency will collapse long before I can retire.

@notastone4832

Жыл бұрын

@@michaelearlgrey lol im 25... i doubt ill ever be able to afford to leave my fathers guest house honestly.. 2 grand a month for an apartment.. our currency is worthless.. oh and 600$ for insurance cause i live near brampton (too close for the insurance companies anyways)

@mikatu

Жыл бұрын

And yet there will be no tax payer money involved this time. But yes, Bitcoin was created for these situations.... and yet people still think it is a ponzi scheme.

@oneukum

Жыл бұрын

I'd say that the group whose confidence they were aiming for was corporate depositors. And in that they seem to have a reasonable chance of success.

@platinumsun4632

Жыл бұрын

Banana republic? Whats wrong with our finance center.

Thank you for clarifying what AT1 bonds are. I saw a reference to them in the WSJ but didn't understand it's significance.

Thank you, Patrick. Each of your videos is highly informative, and often highly entertaining (this one might be the exception, except for a few droll comments you cleverly worked in. Your analyses are always clear, comprehensive and superb..

What a Suisse ending. I bet UBCing some credit 🎉

Patrick you are by far the best economic news presenter I have listened too. Love your dry humour and jokes 👍🏽

@savagepro9060

Жыл бұрын

"economic news presenter " is not "economics news presenter " the former is very concise with his arguments, the latter just converses on economics, regardless

I just want to point out that THIS production plays like a feature film. Absolutely stellar job with this video!

Fantastic deep dive per usual, thanks Patrick!

Hey Patrick! Video rocks, thank you. Watching this, and thinking about SVB and Credit Suisse over the last few weeks has me wondering… How common is it for huge swaths of value, or debt, to disappear, or get wiped out in transactions like this? Specifically in situations where there was some… incompetence…. In the risk management department? My background is in fraud, waste, and abuse, and a large amount of money going up in smoke in times of financial distress usually flags something for us when we are investigating a company. But I don’t know a lot about banks! so I’m asking you 😅