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I suspect the problem is they don't actually know what they are buying. Not every financial institution has reporting systems that are, how should we say it, mo

I suspect the problem is they don't actually know what they are buying. Not every financial institution has reporting systems that are, how should we say it, modern. When I worked with CS they had a mountain of corporate entities. Just dozens of businesses that were pretty hard to do paperwork for, and even as a going concern it was confusing. Now with bankruptcy eminent, it is not any easier to know what is where. I get this feeling they actually have no idea what CS has in terms of assets and liabilities. This is why UBS has that clause about the CDS, if they buy the bag of junk there could be some bomb inside it.

busterarm 4y ago
I remember a couple of decades ago when my brother was working for JPMC. At the time they were an amalgamation of 13 or so large regional banks. They maintained the systems and the departments (like IT, etc) for all of the separate banks and had long-term plans to unify everything that never made any progress. Each banks' departments realized that if they did the work laid out for them that the axe was to follow so they all delayed and delayed and delayed and fought with each other for relevance. My brother was brought in to work exclusively on backups and to wrangle 13 different IT teams doing backups into compliance. They made sure that he didn't get his laptop to start doing his job for a full six months. Every department's backups failed every day. Every department had excuses for not being able to do the remediation work. After a couple of years of collecting a paycheck and making no progress he left and used the money to start his own business. I still wonder how much progress they have made to this day.