UBS And Credit Suisse To Join Deutsche In Capital Raising, As NZZ Am Sontag Sees The Two Banks Needing CHF20 Billion

A report out of Swiss paper NZZ am Sontag cites analysts who see top Swiss Banks UBS and Credit Suisse as needing to follow in DB's footsteps, and raise CHF 20 billion (a little under that in USD). With DB already well ahead of the pack with its capital raise announcement last week, expect rumors of the Swiss banks underwriting their own equity raises to prevent them from this morning's financial euphoria.

Full report from NZZ, as translated by google.

New rules for the global financial industry to force UBS and Credit Suisse to hold higher capital reserves.

In Basel, central bankers and regulators now lay down stricter rules for the international financial world. This has significant consequences for the Swiss banks. UBS and Credit Suisse have to create more than 20 billion francs in capital to meet the new requirements, say experts familiar with the dossier.

The additional funds, the two banks, the quality and level of their reserves would increase massively. They were more resistant to financial crises: the crisis no longer have to stand in the state as in the autumn of 2008, when UBS took billions in state aid will benefit.

Leave the big banks losses in future, should they take this through greater equity itself. Analysts estimate that UBS and Credit Suisse are financially able to make the new funds over the next few years on its own. The stricter provisions not necessarily mean that the Swiss banks have to make capital increases, they say.

The new rules, which are known as "Basel III" known to apply internationally from 2013. They are set by an illustrious panel: From the U.S. Federal Reserve Chairman Ben Bernanke traveled to the Rhine, from Frankfurt, Jean-Claude Trichet, President of the European Central Bank - and with them 25 other central bankers and regulators. National President Philipp Hildebrand and Daniel Zuberbühler, vice president of financial market, representing Swiss interests.

Comments

[HelluvaEngineer]

Nothing to see here.  Continue ramping ES.

[Sudden Debt]

I now wonder if this rising premarket is because of inflation fears because of his or what...

[snowball777]

Put me down for twice as many shares as Trichet, please.

[Robslob]

Ramp explained:

Create the impression that everything is great "ES ramp" so banks have a more favorable environment to steal...ahem...raise money at the lowest possible rate.

So easy even a banker can do it!

[snowball777]

Feign surprise when naked shorts are covered on the plunge down.

"...your winnings, sir."

[firstdivision]

So the bankers sell out of bonds to boost stocks.  Then dilute shares at a higher price to get more funding for fraudlent activities.  Then let it fall back down.  Okay, so all these movements in the market make sense..in a perverse way.

[snowball777]

http://www.youtube.com/watch?v=BPaKNafdJ18

[Dismal Scientist]

Google translation software not quite perfected yet

[RockyRacoon]

Basel III might not be too little but it's sure as hell too late: 2013 will mark the year of the smoking planet.  Great timing guys!

[liberal sodomy]

The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.  - Lord Acton

[Grand Supercycle]

Updated DOW weekly chart:

http://stockmarket618.wordpress.com

[williambanzai7]

SUPER GRAMM

http://williambanzai7.blogspot.com/2010/09/super-gramm.html

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