A fund manager is holding his short position in Credit Suisse despite the Swiss authorities’ multi-billion dollar bailout plan and the possibility of a takeover by rival UBS. Barry Norris, a fund manager at Argonaut Capital, said Saturday morning that he still expects Credit Suisse shares to become worthless. “Our view is that the end game is always for UBS to step in and rescue Credit Suisse with the encouragement of the Swiss government/National Bank,” Norris told CNBC Pro after the Financial Times reported that UBS may take over all or part of Credit Suisse Suisse . “If this happens, we expect [Credit Suisse] zero equity holders, guaranteed deposit holders, and it is possible but unlikely that bond holders will be outright.” Then they buy back the shares later when the price is lower and profit from the difference. [short] Norris, who manages both long-term and long-term/short-term mutual funds, told CNBC’s “Squawk Box Europe” earlier this week. “Basically, the entire bank is in a recession. At the moment, whether that end is orderly or disorderly is up for debate – however, in my opinion. , none of which creates value for shareholders,” he added. The year of losses for the broader stock market. Credit Suisse management is expected to hold talks. Neither UBS nor Credit Suisse would comment on the report when contacted by CNBC. Norris stressed the importance of the bank being regulated in an orderly manner Norris said: “If Credit Suisse had to deal with his balance sheet mess, the problems would spread to other financial institutions in Europe” that he was “determined to move fast to provide a single bank simpler and more focused built on the needs of our customers.” We continue to transform our strategy to deliver value to our customers and other stakeholders,” added the CEO. m. Norris of CSG.N-CH 5Y mountain Argonaut noted that Credit Suisse was the only lender in Europe as it lost 38% of customer deposits in the last quarter of 2022. deposit withdrawn [like] at CreditSuisse. I think what the market is interested in is how the outflows will accelerate in recent weeks,” he added, referring to the collapsed supply chain finance firm, Greensill Capital. invested heavily in Greensill and marketed its money to customers, but the company collapsed in 2021, costing Credit Suisse and its customers $1.7 billion in losses and reputational damage. Shortly thereafter, a default at hedge fund Archegos Capital resulted in another $5.5 billion loss for the Swiss investment bank, which in turn led to these and other controversies leading to a decline in confidence. investor and customer confidence in Credit Suisse, with the bank losing billions of dollars in deposits Impact on the European banking sector Norris also said the possibility of a Swiss lender closure could affect affects the broader European bank g, due to its size and classification as a “systemically important bank.” The largest of the three US banks has been bankrupt until March has assets of more than 200 billion dollars. By comparison, Credit Suisse reported assets worth more than $572 billion in 2022 – double the massive assets of former Wall Street bank Lehman Brothers when it went bust in 2008. He also predicts the contagion will hit the real estate and private equity sectors, which appear “vulnerable from what’s going on in financial markets at the moment.” However, not everyone is worried about the contagion. Investment bank UBS tells clients to invest in European banks rather than US banks. UBS strategists led by Bhanu Baweja said on March 13: “Last week’s sell-off was indiscriminate. We should see this reverse in all regions in the near term. However, over the medium term, we maintain a preference for European banks over US banks, which is driven by relatively lower valuations, higher yield distributions, and probabilities. greater than of [European Central Bank] hold higher interest rates for a longer period, and there is less arbitrage between assets and liabilities.”