Bankruptcy

As Strong as a Swiss Bank??

By J. Michael McBride

There continues to be much news. I saw this analysis of the Swiss government’s actions in regard to UBS which is getting the government to take 60 billion in bad accounts in exchange for a 9% stake in the company and Credit Swiss which is raising 8.7 billion in a new stock offering rather than taking the government investment. I thought it was an interesting article. “It was a sweeping gesture made by the Swiss authorities. See full story. But from a stock-market perspective, are these moves welcome? They're dilutive actions on the whole, but in the current climate that's no surprise. Rumors that the Swiss government would demand a bigger buffer against future losses have been in the market for some time. In New York action, both UBS and Credit Suisse advanced.”

Here is the link to this interesting analysis:
http://www.marketwatch.com/news/story/markets-analysts-mixed-swiss-bank/story.aspx?guid=%7BF92549F3-EFEB-4505-8F69-343C0396B8F1%7D&dist=msr_5

Michael

Full post as published by Texas Lawyer Blog on October 17, 2008 (boomark / email).