Credit Suisse rescue creates bank twice the size of the economy

[ThatRobGuy]

https://www.cnn.com/2023/03/23/investing/credit-suisse-ubs-impact-switzerland/index.html

Worries that Credit Suisse’s downfall would spark a broader banking meltdown left Swiss regulators with few good options. A tie-up with its larger rival, UBS (UBS), offered the best chance of restoring stability in the banking sector globally and in Switzerland, and protecting the Swiss economy in the near term.

But it leaves Switzerland exposed to a single massive financial institution, even as there is still huge uncertainty over how successful the mega merger will prove to be.

“One of the most established facts in academic research is that bank mergers hardly ever work,” said Arturo Bris, a professor of finance at Swiss business school IMD.

There are also concerns that the deal will lead to huge job losses in Switzerland and weaken competition in the country’s vital financial sector, which overall employs more than 5% of the national workforce, or nearly 212,000 people.

 

[rambot]

Switzerland's workforce is that small? Whoa.

 

[ThatRobGuy]

Switzerland's workforce is that small? Whoa.

Yeah, I had to do a double-take on that number.

I know their population is around 9 million, so a workforce of 5 million seemed like it was on the low side.

And it's not like they have a crazy low national retirement age (it's 65 over there)

So perhaps they already had an older-skewing population (or enough people who were wealthy enough to retire early on their own before age 65)

But I guess that number is legit from what I'm reading, and in fact, they even have a "worker shortage" of about 100,000 and are looking to bring in workers from other countries by relaxing some requirements for entry.

 

[HantsUK]

Switzerland's workforce is that small? Whoa.

5% being 212,000 means a working population of 4,240,000, which seems reasonable for a total population of 8.7M (source Population)

 

[Arcangl86]

Yeah, I had to do a double-take on that number.

I know their population is around 9 million, so a workforce of 5 million seemed like it was on the low side.

And it's not like they have a crazy low national retirement age (it's 65 over there)

So perhaps they already had an older-skewing population (or enough people who were wealthy enough to retire early on their own before age 65)

But I guess that number is legit from what I'm reading, and in fact, they even have a "worker shortage" of about 100,000 and are looking to bring in workers from other countries by relaxing some requirements for entry.

It could also be the opposite, that a large chunk of the population are children. Or maybe even both, a lot of children and retired folk and not as many working age people.

 

[rambot]

5% being 212,000 means a working population of 4,240,000, which seems reasonable for a total population of 8.7M (source Population)

That was an embarrassing misread on my part.

Thanks!