Banking Troubles

Recently, Switzerland pushed together the takeover of Credit Suisse by UBS. It was a strategic maneuver to protect the reputation of the Swiss Banking community.

One of the other major European Banks is Deutsche Bank, the largest commercial bank in Germany.

The attached illustration of the price relationship between these two will be helpful to those seeking a decision on whether to purchase one or the other. At the present time, neither is very attractive, but on a relative basis, UBS is stronger. UBS is portrayed in green and DB in red. Prices are as of the close of Friday, March 24, 2023.

Never only one one cockroach.

The late great “Ace” Greenberg led Bear Stearns through the best of times and had among many expressions that “there is never only one cockroach” So…no one should be surprised to see the financial collapse of two large banks over the last few days. Find one and look for others. Another favorite was “this time it will be different”. Bull.

 

The following graphs of SIVB and SBNY show the price history over the last few weeks. Someone knew something.

Prices ar as of the close of Friday, March 10, 2023