Episode 126

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Published on:

24th Mar 2023

Credit Suisse Sells, Regional Banks and the Key to Happiness

Banking giant UBS is in discussions to take over all or parts of Credit Suisse, with the boards of Switzerland's two biggest lenders set to meet separately over the weekend. The Swiss National Bank and regulator FINMA are organising the talks in an attempt to build confidence in the country's banking sector. On Friday evening, Swiss regulators informed their counterparts in the United States and United Kingdom that the merger of the two banks was their "Plan A" to salvage the confidence in Credit Suisse. Several other options are also under discussion between the two banks as both sides try to evaluate regulatory constraints in different jurisdictions.

In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.


They discuss an 85-year long study by Harvard researchers indicating that, while particular roles can’t be reliably correlated with dissatisfaction and burnout, certain job characteristics can be. Jobs that require little human interaction and don’t offer opportunities to build meaningful relationships with co-workers tend to have the most miserable employees, the study found.


Chris and Saied look at news that Bitcoin has climbed to a nine-month high as turmoil in the banking sector drives some investors to turn to digital assets. It rose as far as $28,567, its highest since mid-June, and was last up 0.9%, amid growing expectations that central banks would slow the pace of interest rate hikes.


They also offer some thoughts on contingent convertible bonds, or CoCos, often described as high-yield investments with a hand grenade attached. The UBS takeover of Credit Suisse has pulled the pin on $17 billion of them.


Join Chris and Saied for this fascinating and informative conversation.


Enjoy!



What You’ll Learn in this Show:

  • What’s happened at the Federal Open Market Committee (FOMC) meeting on Tuesday.
  • Why Switzerland is known for having low levels of financial risk and high levels of privacy.
  • Why the axing of Credit Suisse’s $17 billion contingent convertible (CoCo) debt has big implications for the newly combined bank and the wider market.
  • Bitcoin's climb to a nine-month high as turmoil in the banking sector sparks a rally.
  • And so much more...


Resources:


Markets and Mayhem via Twitter


"UBS in talks to acquire Credit Suisse" (article from The Financial Times)


Ulrich Körner via Wikipedia


"UBS buys Credit Suisse for $3.2 billion as regulators look to shore up the global banking system" (article from CNBC)


"UBS Agrees to Buy Credit Suisse for More Than $3 Billion" (article from The Wall Street Journal)

"Big Banks Best Positioned to Weather Crisis: Morningstar" (article from The Street)

"Credit Suisse's $17 billion of risky bonds are now worthless" (Bloomberg via Instagram)

"Why $17 billion in risky debt was wiped out in Credit Suisse rescue deal" (Bloomberg via Instagram)

Zerohedge via Twitter

"Bitcoin climbs to 9-month high as bank turmoil sparks rally" (article from Reuters)

"85-year Harvard study found that people with this type of job tend to be the unhappiest" (article from CNBC)

"Local Banks Could Leave Gaps That Are Hard to Fill" (article from The Wall Street Journal)

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About the Podcast

The Higher Standard
This isn’t a different standard, it’s the higher standard.
Welcome to the Higher Standard Podcast, where we give you ultra-premium, unfiltered truth when it comes to building your wealth and curating the lifestyle of your dreams. Your hosts; Chris Naghibi and Saied Omar here to help you distill the immense amount of information and disinformation out there on the interwebs and give you the opportunity to choose a higher standard for yourself. Sit back, relax your mind and get ready for a different kind of podcast where we elevate your baseline with crispy high-resolution audio. This isn't a different standard. It's the higher standard.

About your host

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Christopher Naghibi

Christopher M. Naghibi is the host and founder of The Higher Standard podcast — a rapidly growing media platform delivering unfiltered financial literacy, real-world entrepreneurship lessons and economic commentary for the modern era.

After nearly two decades in banking, including his most recent role as Executive Vice President and Chief Operating Officer of First Foundation Bank (NYSE: FFWM), Christopher stepped away from corporate life to build a brand rooted in truth, transparency, and modern money insights. While at First Foundation, he had executive oversight of credit, product development, depository services, retail banking, loan servicing, and commercial operations. His leadership helped scale the bank’s presence in multiple national markets from $0 to over $13 billion.

Christopher is a licensed attorney, real estate broker, and general building contractor (Class B), and he brings a rare blend of legal, operational and real estate expertise to everything he does. His early career spanned diverse lending platforms, including multifamily, commercial, private banking, and middle market lending — holding key roles at Impac Commercial Capital Corporation, U.S. Financial Services & Residential Realty, and First Fidelity Funding.

In addition to his media work, Christopher is the CEO of Black Crown Inc. and Black Crown Law APC, which oversee his private holdings and legal affairs.

He holds a Juris Doctorate from Trinity Law School, an MBA from American Heritage University, and two bachelor degrees. He is also a graduate of the Yale School of Management’s Global Executive Leadership Program.

A published author and sought-after speaker (unless it’s his son’s birthday), Christopher continues to advocate for financial empowerment. He’s worked pro bono with families in need, helped craft affordable housing programs through Habitat for Humanity, and was a founding board member of She Built This City — helping spark interest in construction and trades for women of all ages.