Hey!!!! Recessions are a part of life in our system. They come and they go. For whatever the reason the next recession is always somewhere in the future. But they are inevitable.

UBS Group AG agreed to take over its longtime rival Credit Suisse Group AG for more than $3 billion, pushed into the biggest banking deal in years by regulators eager to halt a dangerous decline in confidence in the global banking system. The deal between the twin pillars of Swiss finance is the first megamerger of systemically important global banks since the 2008 financial crisis when institutions across the banking landscape were carved up and matched with rivals, often at the behest of regulators.
The Swiss government said it would provide more than $9 billion to backstop some losses that UBS may incur by taking over Credit Suisse. The Swiss National Bank also provided more than $100 billion of liquidity to UBS to help facilitate the deal.
Swiss authorities were under pressure to make the deal happen before Asian markets opened for the week. The urgency on the part of regulators was prompted by an increasingly dire outlook at Credit Suisse, according to one of the people familiar with the matter. The bank faced as much as $10 billion in customer outflows a day last week, this person said.
The sudden collapse of Silicon Valley Bank earlier this month prompted investors globally to scour for weak spots in the financial system. Credit Suisse was already first on many lists of troubled institutions, weakened by years of self-inflicted scandals and trading losses. Swiss officials, along with regulators in the U.S., U.K. and European Union, who all oversee parts of the bank, feared it would become insolvent this week if not dealt with, and they were concerned crumbling confidence could spread to other banks.
An end to Credit Suisse’s nearly 167-year run marks one of the most significant moments in the banking world since the last financial crisis. It also represents a new global dimension of damage from a banking storm started with the sudden collapse of Silicon Valley Bank earlier this month.
Unlike Silicon Valley Bank, whose business was concentrated in a single geographic area and industry, Credit Suisse is a global player despite recent efforts to reduce its sprawl and curb riskier activities such as lending to hedge funds.
Credit Suisse had a half-trillion-dollar balance sheet and around 50,000 employees at the end of 2022, including more than 16,000 in Switzerland.
UBS has around 74,000 employees globally. It has a balance sheet roughly twice as large, at $1.1 trillion in total assets. After swallowing Credit Suisse, UBS’s balance sheet will rival Goldman Sachs Group Inc. and Deutsche Bank AG in asset size.

Before Collapse of Silicon Valley Bank, the Fed Spotted Big Problems
The bank was using an incorrect model as it assessed its own risks amid rising interest rates, and spent much of 2022 under a supervisory review.

Yes just saw this! Is anyone considering nibbling on any of the banks? If so how are you doing so? Andrew Bary had a nice piece in Barron’s where he favored JPM, MS and GS… it’s a good read.

Company			Symbol	Uninsured deposits / 	Loans and HTM/		YTD %
domestic deposits 	total deposits		change
(higher is riskier)	(higher is riskier) 	
Bank of New York Mellon	(BK)		96.5%			31.2%		 -0.1%
SVB Financial Group	(SIVB)		93.9%			94.4%		-53.9%
State Street		(STT)		91.2%			40.1%		 -1.8%
Signature		(SBNY)		89.7%			93.3%		-39.2%
Northern Trust		(NTRS)		83.1%			54.5%		 -3.1%
Citigroup		(C)		77.0%			64.6%		  4.3%
HSBC Holdings		(HSBA)		72.5%			47.4%		 11.9%
First Republic Bank	(FRC)		67.7%			110.6%		-69.1%
East West Bancorp	(EWBC)		65.9%			91.1%		-13.9%
Comerica		(CMA)		62.5%			72.8%		-36.6% 

Financial institution	Deposits not insured by the FDIC
Signature Bank			90%
SVB				88%
Citigroup			85%
First Republic			68%
JPMorgan 			59%
BNY Mellon			56%
Citizens Financial		49%
KeyCorp				47%
PNC				46%
Truist				46%
M&T Bank			45%
Fifth Third 			42%
Bank of America			33%
Goldman Sachs			33%
Huntington Bancshares		33%