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Yesterday, after the market closed, the entire Credit Suisse cost 24 billion Swiss francs. That was the value of his shares.
A bargain? Partners Group, which is roughly a score of the size of CS, brought marginally less on the balance to 23 billion.
CS continues to be a global player in big finance. Number 2 has 1.5 trillion customer assets to manage.
The decision by UBS President Axel Weber to merge the two Swiss financial multinationals is, in fact, an acquisition plan. UBS would have a say in the deal.
Swiss competitors have woken up as a result. “Goldman, Morgan Stanley and other big players are considering taking over CS themselves,” a Zurich asset manager said yesterday.
Is there an acquisition race for CS?
This was not evident on the stock market yesterday. After the 4 percent jump in CS shares on Monday, when Weber’s “Signal” project went public, the shares fell against the trend.
However, CS is now an “objective”, a goal. The UBS offensive has transformed the main Paradeplatz bank into one.
CS has pearls: the Swiss universal business, selected markets in international wealth management, parts of asset management and investment banking.
If a big bank in the US or UK took over the CS, it would probably be filleted.
Switzerland would be particularly attractive. CS is a force in the national business and makes proud profits with a cost / income ratio of less than 60 percent.
Private banking would be equally interesting. Goldman Sachs and Morgan Stanley could take a big step forward with the world’s richest.
Investment banking is problematic despite its strengths. Many “explosives” continue to threaten to detonate there.
Major US houses could limit risks, with the integration of CS positions on their own books.
The crucial question is whether SC can grow back on its own. If your board of directors concludes that this is useless, then the relevant body would approve a sale.
Given that CS is dominated by large (Anglo-Saxon) investors, it is not certain that the national solution with UBS will take precedence.
