These are the shareholders who have got burned by the UBS take over of Credit Suisse

Today, the Swiss government and the Swiss National Bank arranged a shotgun wedding between a reluctant UBS and the desperate Credit Suisse.

UBS is paying the equivalent of $2bn. That values Credit Suisse shares at 0.50 swiss francs per share. At the close of trading on Friday the shares were trading at 1.86 swiss francs. To sweeten the deal for a clearly reluctant UBS, the Swiss National Bank will provide 100bn in liquidity/cheap loans.

Here's the shareholders who have been wiped out:

source

I know there is a fetish for seeing shareholders wiped out (witness the glee with which the Biden administration celebrated the wiping out Silicon Valley Bank shareholders) - but the Saudi National Commercial Bank only became shareholders six months ago. They were courted by the Swiss to spend $1.5bn on their 9.88% stake, because Credit Suisse was desperate for an injection of shareholder capital. That stake is worth about $200 million tonight.

Credit Suisse has been in trouble for decades, their problems weren't caused by the Saudis taking a stake six months ago.

Notice the other sovereign funds in the list; the Qatar Investment Authority, Norges Bank (the Norwegian Sovereign Fund) and the Government Pension Fund of Japan.

The lesson these sovereign funds will take from this is not to put a single penny in western banks.

So when governments go begging to them to inject capital into this or that struggling bank, they'll get a firm No - no-one wants to get scammed the way the Saudis were by the Swiss.

That means for other struggling banks, the choice is failure or a taxpayer bailout. Such is the result of a hostile environment for shareholders.