This is the problem with banking - they mess up, get bought buy a competitor to sweep the problem under the carpet and kick the can down. this reduces competitors in the marketplace. Eventually there is a state bailout
CS’s shareholders lost all their money. Most employees will be fired. I don’t see how this is a good outcome for cs at all.
There is already a state bailout. CS got loaned $54B. UBS got guaranteed another $100B loan for buying CS - and I read from another post (https://news.ycombinator.com/item?id=35222147) the state will cover up to $9B in losses from the buyout.
I was including that - the issue to me is that banking needs better regulation to stop them getting into this situation in the first place
I wonder if there’s anything to learn from the Canadian banking industry, which, through regulation, basically didn’t participate in the 2008 collapse and seems to be in fine shape during all this. (Or maybe it’s not and we’re up next!)
Just wait until the RE bubble collapse and we’ll see. There’s a ton of mortgage fraud not to mention the risk of defaults. Everyone is so strained.