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Even more on the nose, I think: > The upshot of this for UBS is not that it paid CHF 3 billion to buy its historic competitor. The upshot of this is that it ha
by OJFord 4y ago
Even more on the nose, I think:
> The upshot of this for UBS is not that it paid CHF 3 billion to buy its historic competitor. The upshot of this is that it has assumed hundreds of billions of francs of liabilities, and taken on a bunch of assets that are probably worth more than that, but it’s hard to tell over a weekend, or ever really.
- chii 4y ago> it’s hard to tell over a weekend, or ever really. they likely have gotten some sort of guarantee on those long dated bond assets from the gov't (either in secret, or something similar), to take on the risk. No business is going to willingly take on liabilities that they dont know, and is unsure they will profit off.