News for hackers. Stuff that matters.

A comment on Switzerland Weighs Full or Partial Credit Suisse Nationalization.

Re:Switzerland Weighs Full or Partial Credit Suisse National... by calr on Sunday March 19, 2023 @11:20AM (#35219851)
When a company is nationalized what typically happens to the shareholders? Are they wiped, do they get paid out, or does some of their ownership carry over to the new entity (rights to a special dividend or something)?
[ Parent | on HN ]
Re:Switzerland Weighs Full or Partial Credit Suisse National... by elzbardico on Sunday March 19, 2023 @11:36AM (#35220041)
As the bank seems to be toast, the fair market price of their shares should be very close to zero. The shareholders are already fucked.
[ Parent | on HN ]
Re:Switzerland Weighs Full or Partial Credit Suisse National... by nwellnhof on Sunday March 19, 2023 @11:28AM (#35219927)
The article talks about "full or partial" nationalization. I have no idea how a full nationalization would look like, but typically, a company is only partially nationalized. The state takes a large equity stake, diluting the ownership of previous shareholders.
[ Parent | on HN ]
Re:Switzerland Weighs Full or Partial Credit Suisse National... by naveen99 on Sunday March 19, 2023 @11:29AM (#35219939)
Current Shareholders are a rounding error, as bond holders with over $60 billion at risk are at risk of being bailed in as shareholders.
[ Parent | on HN ]
Re:Switzerland Weighs Full or Partial Credit Suisse National... by arbuge on Sunday March 19, 2023 @11:48AM (#35220162)
They would likely be wiped out in this scenario.

Note that long term shareholders have already been pretty much wiped out. CS was worth almost $300B before the GFC, and down 70x to around $8B Friday. Apparently UBS was uncomfortable offering more than $1B for it today, so already down a further 8x since then.

[ Parent | on HN ]