Per Bloomberg

The UBS Group AG is poised to take over Credit Suisse Group AG, and the Swiss government has promised 109 billion francs, around $118 billion USD, to backstop the emergency sale. This would cost every Swiss citizen 12,500 Swiss francs, or $13,500 USD.

Switzerland is a country of 8.7 million people. On top of the government's 109 billion francs promised, the Swiss National Bank also guarantees 100 billion Swiss francs, around $108 billion USD, without government guarantee backing. In combination, this would result in 209 billion Swiss francs, or around $226 billion USD, a quarter of its total GDP.

The 209 billion Swiss francs would exceed the total European defense spending in 2021. This would result in the largest corporate rescue since 2008, where it spent 60 billion francs, or around $65 billion USD, to bail out UBS.

The UBS Group AG is Credit Suisse's Zurich rival.

In Zurich, Credit Suisse's headquarters had around 200 people gathered outside, throwing eggs at the building and chanting, "eat the rich." Zurich-based tax consultancy MME's partner, Christoph Rechsteiner, gave a statement regarding the situation, citing how unfair it was.

Rechsteiner: “We are fed up with the idea that if you are big enough, you get everything... The law is changed for you over a weekend.”

So far, it was reported that Credit Suisse bankers have started to flood recruiters with job inquiries ahead of the supposed takeover of the UBS Group AG. This included firms and headhunters in Singapore, Hong Kong, and London.

A Credit Suisse spokesperson in Singapore noted they were doing everything possible to serve clients, ensuring an "orderly transition." The spokesperson encouraged colleagues to continue "against a difficult backdrop."

When asked who was responsible for the disaster, Credit Suisse Chairman Axel Lehmann said there was a social media storm in autumn.

See flow at unusualwhales.com/flow.

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Bloomberg