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A Busy Bank Crisis Weekend
From Zurich to Omaha.
A few of Warren Buffett’s fellow Omahans (One of the first photos that came up when searching for “Omaha” on Pexels. Credit: WoodysMedia).
A Busy Weekend For Bankers
The three main headlines this weekend with respect to the banking crisis:
Mid-Sized U.S. banks call for the FDIC to insure all U.S. bank deposits for the next two years.
Speculation that regional bank chiefs have been flying to Omaha to meet with Warren Buffett. Buffett’s Berkshire Hathaway, Inc. (BRK.A, BRK.B) has over $120 billion in cash and Buffett of course has a history of opportunistically investing in banks during crises in the past.
Negotiations instigated by the Swiss National Bank for UBS Group AG (UBS) to buy all or part of its ailing rival Credit Suisse Group AG (CS).
Looking Ahead to Monday
Presumably, the goal in the U.S. and Switzerland is to be able to announce some positive news before futures open tonight. If they’re successful, that may benefit our bullish bank position on Monday; if they’re not, that may benefit our bearish bank positions. In either case, we’ll have an eye out for potential opportunities on both the long and short sides. And of course we may have some additional excitement on Tuesday if reports that Trump will be arrested then are accurate.
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