Today I Want to talk about how UBS could be about to collapse as a result of taking on Credit S's toxic swap portfolio. The CEO of UBS said on Wednesday that UBS would need a private buyer in case of a rescue I Want to explain what happened to Credit S what UBS has taken on and why they're now in trouble. So stay tuned and let's make some money. And now I'll drive straight in with the key information so you can see from this article.

it says the UBS CEO says a private buyer is the third outcome in case of a rescue. Now you might be thinking hang on Tom Private Buyer Rescue UBS I Thought UBS was a solid Bank What actually happened to UBS and what have they acquired from Credit Swi? Well back in 2022, Aragos was a family office doing some business with Credit Swiet. Aragos was using very risky Total return swaps. So Total return swaps allow an entity or a hedge fund to have direct exposure to a stock through an indirect product which is a complex derivative.

Basically, they could have all the exposure to stocks like GameStop AMC and others without having to report their short interest. They then went to other Banks to do the same deal and ended up with some stocks like Paramount or CBS. for example, where they held over 100% of the flow. After a while, these toxic swap derivatives ended up backfiring on them on their long positions and on their short positions.

Too many of those stock that were massively overinflated because they had gone irresponsibly long, then crashed 80 or 90% In the meantime, a number of banks like Credit Swi, Nura and Goldman Sachs ended up taking on billions of dollars in losses. But it's likely that not all of their positions ended up being closed out of and therefore, Credit S effectively inherited these toxic swap positions from Aragos. As Peruvian B tweeted, he said Aragos failed due to these toxic Equity Total Return swaps. Credit S took the Arc Goos hit, but months later they went under as well and were bought by UBS But UBS is now saying they want a private buyer in case of a crisis.

So what's this hot potato that keeps blowing up all of these big Banks Let's not forget, credit Swe wasn't a small child's play. Bank Managing a few million dollars, they were one of the largest European Banks out there. They ended up failing and now UBS is struggling as well wanting a private buyer in case of a crisis or in need of a rescue. The UBS CEO said.

even in the unlikely event of something going wrong at UBS, we probably have enough cushion before even speaking about a resolution of the bank, and it's a very unlikely risk of a loss for the taxpayer. But if UBS did need to be rescued, a private buyer would be preferable instead of having taxpayer bailouts. But you may ask, why have UBS all of a sudden changed their mind and are now talking about a rescue? Well, just Dario has answered just that He said here it is 2 weeks ago UBS ended their $9 billion loss protection and the100 billion liquidity backs stop agreements in place with the Swiss government the credit Swis arm that Still Remains even repay the $50 billion borrowed from the Swiss National Bank during the emergency. So now UBS all of a sudden don't have the protection from the Swiss National, Bank and the Swiss government.

They're effectively now off on their own with whatever risk Remains The reason why they've now forone that loss protection and liquidity back stop is because the Swiss government now thinks everything is okay and is taking back those privileges. The reason why they did that is to alleviate pressure from those taxpayers who are now happy they don't have to potentially back stop UBS as well as back stopping credit Swiss Saying no wonder the Swiss government was quickly and cheerfully sharing the news with the Press declaring how Swiss taxpayers will now be free from any risk relating to credit swi unless of course UBS blows up pretty shortly and all of a sudden the Swiss government gets back involved to back stop them as well or tries to find a private buyer. I Also wanted to quickly remind you of the Thanksgiving sale we have at the millionaire mindset. Trading Group for the next 7 days or for the last week of November you can currently get five weeks of membership for the price of four if you sign up in the next s days when you get rebuild in December I'll refund that December billing so you get five weeks for the price of four or get this last week of November entirely for free I Also wanted to give a massive shout out to JJ who literally joined the Millionaire Mindset Trading Group yesterday and is already making profits.

He started a small position in today's fast moving Momentum News Play which was Sprc and made about 10% profit in around 30 30 seconds. So if you guys want to be making hundreds of dollars in 30 seconds, be sure to join the Millionaire Mindset Trading Group Linked In The description below now might be saying: Tom How did Aragos on their own cause not just Credit Sweet to explode, but potentially UBS to explode as well. Surely it couldn't just have been Aragos that caused all of that damage. But as just Dario also points out, he said.

now tell me one thing: What are the chances that Aragos was an isolated case in Credit S's books? Zero? Of course. No need to say more. It's likely Aragos wasn't just the Only One Singular hedge fund in the entire world that knew what a total return swap was. And it's likely they weren't the only hedge fund in the entire world that was abusing the powers of a total return Swap And therefore, it's likely these toxic derivatives that are still in credit, Swi, or now still in UBS aren't just related to Aragos.

they're likely related to a number of other hedge funds as well. So I can only imagine the total size of these toxic derivatives and how much Havoc they're actually causing, especially as UBS has already paid hundreds of millions of dollars over credit SES Areos failings. and that indicates to me there was likely other hedge funds that were also engaging in similar crimes and Credit S was helping all of them. This tweet I also found really interesting saying that something broke at UBS saying a UBS bond which was due today to settle was mysteriously deleted.

It says participants are advised that NC through its agent has received notification from the underwriter that the following qips on the above mentioned issue originally scheduled for 22nd of November 2023 has been deleted now. I Don't know whether that's because the bond was actually settled and repaid or if the can was just kicked once more because I then saw this tweet from restructuring that talks about a a UBS issuance saying UBS issued a new $3.5 billion Bond on November 8th. So why would you need to issue a new Bond If UBS is actually fine and has tons and tons of money, wouldn't they just repay the old Bond and say great, that's all that Bond Gone! We don't need to pay interest on it. we've got tons and tons of cash.

so let's carry on. Why would they need to create a new Bond and sell it as quick as possible? This is exactly what Silicon Valley Bank and Signature Bank were trying to do before their collapse. They tried to issue new bonds with no interest. They tried to sell new shares but with no interest as well and as a result ended up collapsing.

Now it does say there was interest for this. UBS Bond I Guess because many investors are completely oblivious to the fact that UBS could actually fail to me. if UBS were really solid, they wouldn't need to be issuing new Bonds in a banking crisis. They' just carry on unscathed and and show their strength.

And what makes it even more worrying is that UBS actually snuck in a special Clause saying UBS has added a clause that the bonds will convert to equity instead of being written off during bankruptcy. Again, why would they need to add this? Clause If UBS was at no risk of going bankrupt unless of course they are at risk of going bankrupt and investors would have never bought the bond unless that Bond would convert to equity first. the UBS CEO then continued to talking and also said that today UBS I Promise is one of the world's safest large institutions. but as V or virtual at Risk tweeted saying no, just one of the largest after gobbling up toxic positions from Credit S for pennies on the dollar I think it will be very interesting to see what happens to UBS over the next couple of months.

Do they desperately start issuing new bonds after Bond after Bond after bond to try and raise more cash? Or do they start selling off portions into their business? Do they start trying to dish out and sell some of these toxic derivatives I Guess who in their right mind would actually buy them? Or do they start selling off actual Revenue generating portions of their business? Or are we going to experience another bank bankruptcy just like Credit S like First Republic like Signature Bank and like Silicon Valley Bank before that And how many times are they going to try and Kick the Can of these toxic derivatives until every single Bank turns around puts the hand up and say get away from me I don't want any of that toxic rubbish. Also, my video yesterday I was talking about these hedge fund short sellers that sustained losses of approximately $43 billion due to the current rally. Now when I saw this article, I thought that money had been lost over the last month 2 months, 3 months as the market had been rallying. But actually, these short sellers lost $43 billion over the last few days.

Literally, in less a week, short sellers lost $43 billion in the market. That is absolutely catastrophic And I can't imagine if the market continues running. These short sellers could hold on for much longer. But guys, be sure to let me know what you think down in the comments below.

And as always, guys, be sure to ding that notification Bell because that way you'll be alerted when I upload a new video. Cheers!.