dani: speaking of being prudent, these talks, first reported by the ft to unwind michael klein's firstplan, what we know about this? >> what we are hearing is the big plan for the ubs takeover to spin out the investment bank. now it seems it could all be falling apart. michael klein's plans, it looks as though ubs would prefer to cherry pick the top credit suisse investment bankers. so, any plans he might have had for a spin off look as though they might not happen. having said that, the executives are still holding out for this plan and they are talking to potential suitors who might still be interested in this spinoff. we will have to wait and see what happens in that space. dani: while the ubs purchase of credit suisse has way to go until it's resolved, one thing in the u.s. that has yet to be resolved is the potential rescue of first republic bank. where do we stand? >> that's it from one trouble lender to another. what we are learning now is that u.s. officials and wall street leaders are in talks to really try to get a deal done for this bank. they are looking at offering public

a notional, with the latest from israel. lets for us live to michael klein, former israeli parliament member from the lecount party, joining us from television. hello. hello. so what are your thoughts on the latest develop banks? we're seeing in israel? are we likely to see the protests grow in numbers? i guess it will end in 2 days, the going to recession of holidays and a lot of holidays either a low will pass so the government is now we've been there will be postponed. and then of course it will be an opening of negotiation. i guess the fuel will end for this month straight as though and extreme elements will not be satisfied with me because this is made by the even by stopping the legislation for several time because there is a real goal is bringing down a miss any oh into the last election that was 4 months ago and gave, given the majority, this is a minority. they believe that they design the best in the country and they cannot do it by election. they will drive by hiring this and you know, by putting that against him any way that they can bring down the government, but they wil

there is of course credit suisse , the investment banking business was meant to be spun off under michael klein citigroup in banking investment head was selling as part of the deal, all of that is now in question. coming to the end of the european market open and let's cross back out to zurich where francine is standing by. we will check in on the markets. it's been a remarkable day for these equity markets and bond markets as they adjust to the news of the momentous decision for ubs to absorb credit suisse. ubs down 11%. credit suisse tumbling 60%. the losses as we adjust to the news that ubs has taken over credit suisse. what it means for profitability in the banking sector. francine has plenty more coming up. >> special coverage, three questions we want to answer. what does this mean for bondholders. are we now safe, do we have a safer banking system and we try to figure out what this deal means for the investment bank and the swiss bank. ♪ everything's changing so quickly. before the xfinity 10g network, we didn't have internet that let us play all at once. every device? in every room? why

business going forward, but i recall last week there were some questions around what will happen with michael kleinnd the arrangement to effectively spin off that business of credit su suisse i don't think there's some comments yet i don't know that there was a suggestion that that deal needs another look at because it may not be appropriate for the investment bank going forward some of all of a sudden you have a business that has serious scale and the ability to take on the americans finally, a european challenger if you like, in basic investment banking and markets management, and that would be extraordinary and perhaps something as europeans that we might celebrate, but obviously the ink is still not dry on this deal so what exact ly done the morgan stanley veteran of investment banking, what exactly does he want to see out of this new ubs >> it also should be said for a long time ermotti worked alongside him. one other thing worth mentioning is the political backlash. again, in this press conference the trio did receive some questions about what the political climate suggests about the future o

you're not going to get -- michael klein is not going to get his moment in the sun to set up this venture looks like that is not happening. it will allow ubs to bring on important members of the senior team from the ubs ranks from around the world that will enhance what they are already doing across the board. shery: we saw the news that credit suisse bonuses are getting deferred. who does that benefit? >> it is one of the many things that has come out of this tie up is who gets hit and where the surprise is. we have seen it with people, some of the bondholders who have been decimated and some of the staff for credit suisse who have got the locked in credit bonuses. looks like they will not be getting those for a significant amount of time. it benefits part of the management team trying to make this partnership happen. a lot of these details were ironed out over a short space of time. the last couple of days since the announcement late sunday they have been trying to iron out things like this. it looks like for many of credit suisse staffers that had these long-term bonus payments they mi

a challenge on that front with trying to unwind the deal that was done before the takeover for michael kleinhe renewed credit suisse first boston. that is one challenge. he will look at what parts of the investment bank to keep, what people to keep. on the wealth management side, ubs and credit suisse are wealth management giants but there is probably not room for two. so he has to figure out how that will work out as well. dani: just thinking about the reason that hamers was brought on two years ago, it would bring ubs into the digital age and grow a wider base of affluent clients. does this reflect not even for ubs, but this strategy towards digital and bringing in more clients, maybe it is falling away from the banking sector. we know goldman has been pulling back from its dreams for retail clients. is this a time for banks to reentrench and get back to the roots? >> that is fair to say. the digital side may have been a priority a while back. but that has fallen by the wayside, particularly in this case, given the monumental task of integrating these two huge entities in switzerland. and

if this michael klein deal happens, they lose the best people to that's been out.t credit suisse last year, promise to pay him $175 million to do the deal as well as another $10 million of fees to help them restructure the bank. ubs is trying to figure out how to get out of that deal. without having to pay too much. david: yeah. i mean, all of us certainly are in that part of the conversation on everything. thank you so much. nabila ahmed there. let's get more on the banking sector. is there anything more to worry about in the asia-pacific you look at the lenders? let's bring in jonathan cornish, head of asia-pacific think ratings at fitch. thank you so much for coming. i'm sure you guys have been busy these last few weeks. even plural. why don't you start. instead of me asking the question what is the number one question you have been getting? jonathan: the number one question really is are there any aipac banks that are vulnerable like the institutions that we have seen fail recently. whilst there are definitely risks out there, they are appropriately reflected i

credit suisse had made to spin that business out under the first boston brand and to be run by michael kleine did that deal in october of last year. they were to pay $175 million to make this deal happen. now ubs is examining ways to get out of that. they've sought legal advice to see how they can get out of that deal with the least amount of money possible. shery: we have another big conversation coming up on thursday. city ceo jane fraser joins us at the economic club of washington. this will be the first conversation with a major u.s. bank petersons the turmoil began. that starts at 8:00 thursday hong kong time. this is bloomberg. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh when covid hit, we had some challenges. i heard about the payroll tax refund that allowed us to keep the people that have been here taking care of us. learn more at getrefu

it would be under the name first boston, led by a gentleman named michael klein, who was at one appointmentn advisor and on the board at cs, but then did a deal under which they were purchasing his firm and he would lead the investment bank here in the u.s. not going to happen anymore, it would seem this is ubs's show now, and it does not appear to include a plan that had been put in place. unclear to me. i haven't been able to get ahold of mr. klein, but unclear as to whether there's a break fee there that will be paid. that deal did not close. and what the people who work for csfb now in the states are worried about, of course, is that jobs are at risk. >> when you talk about -- it's 167-year-old bank that, in two days, with very little due diligence, was just basically forced into ubs's hand, and they have 50,000 global employees how do we look at this, mike is this a bear stearns moment? there are some parallels but the course of this loss of confidence >> it's that sort of thing where you basically hope that getting absorbed by the bigger, healthier bank is going to be enough i don't w

michael b. jordan apologized to his mom for his sexy new calvin klein underwear ads," saying "before the steamy was like, my mama's gonna have to see this. i'm sorry. it's out here. i've got my business all out in the streets. literally." i can totally relate. i had to apologize to my entire family when they released my ads for for "eurosausage swim slings." meanwhile, after a robbery in philadelphia, a u-haul van took philly police on a chase that hit speeds as high as 90 miles per hour. 90. now we know what "u" was hauling: ass. meanwhile, an international archeological mission has uncovered the remnants of what is believed to be a 5,000-year-old restaurant in southern iraq. researchers identified it as an ancient restaurant when they found the remains of a bartender doing coke by the dumpster. somebody. i've worked in a lot of restaurants. somebody is doing coke by the dumpster. meanwhile, as i have not ra pzoo lath,rrng his keers, but they n citplen suly of ratthou.orservice. these are new york ci master meanwhile, a chinese tech inventor has rolled out a new kissing device that allows mono