The Swiss banking giant UBS earned according to Bloomberg almost $35 billion in the acquisition of Credit Suisse. Funnily enough, the Swiss government also helped with that. In total, it would be a profit of $ 34.8 million that UBS was able to collect from Credit Suisse, which has collapsed, among other things, as a result of the interest rate hikes by the central banks.
At the moment, the deal is not yet complete. UBS is currently going through the pre-acquisition research process.
Corpses in the closet
If Bloomberg’s story is correct, UBS has already found several proverbial ones corpses in the closet at Credit Suisse. Among other things, facilitating the money laundering of a Bulgarian drug dealer and a bribery scandal worth half a billion dollars from a tuna fishery in Mozambique.
Throughout its long history, Credit Suisse has been accused of several counts. Including tax fraud and fraud during the 2008 global financial crisis involving mortgages.
Furthermore, the bank is said to have close ties with drug traffickers and has often been linked to money laundering cases. In itself, this is nothing strange for a bank that operates on an international scale. These are things that you sometimes see about a lot of banks.
Strangely enough, however, it is not often that bankers are actually put on trial for this. In the end, after the global financial crisis of 2008, not many people from within that system have been convicted, even though a lot of misery has taken place.
Not sure yet
Although UBS is therefore left with an estimated $ 34.8 billion from the rescue of Credit Suisse, there are also a lot of snags to the acquisition. In particular, the legal problems resulting from the above-mentioned corpses that are still in the closet at Credit Suisse.
The traditional financial world is once again showing its worst side. The fact that another bank can now make a profit of $ 34.8 billion on the already collapsed Credit Suisse is of course a strange situation.
Especially when you consider that the Swiss government ultimately played an important role in the acquisition of Credit Suisse by UBS. Without the Swiss government and therefore the tax money of the Swiss people, it probably would not have been possible to take over the bank.
That is also why Satoshi Nakamoto created Bitcoin in 2009. He was done with the so-called privatization of profits and socialization of losses, as we saw again with Credit Suisse and UBS.