‘Fast Money’ trader Tim Seymour

Published

2 months ago

April 16, 2025

“Fast Money” trader Tim Seymour wants to help investors avoid common money traps that could leave them exposed to losses, particularly in a volatile market.

So, he’s out with a shortlist of four tips to deliver some peace of mind when things are going south.

Tip No. 1: Don’t have more money in the market than you can stomach.

Whether it is margin calls or anxiety about losing money you can’t afford to lose, bad decisions are often made during desperation.

Tip No. 2: Don’t hope that you get back to breakeven.

If you’re only holding a long position because you don’t want to lose money on the trade, you risk losing more.

Bottom line: Own a stock based on merit, not hope.

Tip No. 3: Don’t assume yesterday’s investment rational will work tomorrow.

Ask yourself, “Has something changed in the fundamental case or is it a case of market volatility?” If something changed, make adjustments.

Tip No. 4: Don’t cut your flowers and keep your weeds.

Often, the highest quality companies will outperform in a down market. Bad position? Circle back to No. 2.

To get more personalized investment strategies, join us for our next “Fast Money” Live event on Thursday, June 5 at the Nasdaq in Times Square.

Stocks making the biggest moves midday: WOOF, TSLA, CRCL, LULU

Published

8 hours ago

June 6, 2025

Business Finance News

Swiss government proposes tough new capital rules in major blow to UBS

Published

10 hours ago

June 6, 2025

Business Finance News

A sign in German that reads “part of the UBS group” in Basel on May 5, 2025.

Fabrice Coffrini | AFP | Getty Images

The Swiss government on Friday proposed strict new capital rules that would require banking giant UBS to hold an additional $26 billion in core capital, following its 2023 takeover of stricken rival Credit Suisse.

The measures would also mean that UBS will need to fully capitalize its foreign units and carry out fewer share buybacks.

“The rise in the going-concern requirement needs to be met with up to USD 26 billion of CET1 capital, to allow the AT1 bond holdings to be reduced by around USD 8 billion,” the government said in a Friday statement, referring to UBS’ holding of Additional Tier 1 (AT1) bonds.

The Swiss National Bank said it supported the measures from the government as they will “significantly strengthen” UBS’ resilience.

“As well as reducing the likelihood of a large systemically important bank such as UBS getting into financial distress, this measure also increases a bank’s room for manoeuvre to stabilise itself in a crisis through its own efforts. This makes it less likely that UBS has to be bailed out by the government in the event of a crisis,” SNB said in a Friday statement.

‘Too big to fail’

UBS has been battling the specter of tighter capital rules since acquiring the country’s second-largest bank at a cut-price following years of strategic errors, mismanagement and scandals at Credit Suisse.

The shock demise of the banking giant also brought Swiss financial regulator FINMA under fire for its perceived scarce supervision of the bank and the ultimate timing of its intervention.

Swiss regulators argue that UBS must have stronger capital requirements to safeguard the national economy and financial system, given the bank’s balance topped $1.7 trillion in 2023, roughly double the projected Swiss economic output of last year. UBS insists it is not “too big to fail” and that the additional capital requirements — set to drain its cash liquidity — will impact the bank’s competitiveness.

At the heart of the standoff are pressing concerns over UBS’ ability to buffer any prospective losses at its foreign units, where it has, until now, had the duty to back 60% of capital with capital at the parent bank.

Higher capital requirements can whittle down a bank’s balance sheet and credit supply by bolstering a lender’s funding costs and choking off their willingness to lend — as well as waning their appetite for risk. For shareholders, of note will be the potential impact on discretionary funds available for distribution, including dividends, share buybacks and bonus payments.

“While winding down Credit Suisse’s legacy businesses should free up capital and reduce costs for UBS, much of these gains could be absorbed by stricter regulatory demands,” Johann Scholtz, senior equity analyst at Morningstar, said in a note preceding the FINMA announcement.

“Such measures may place UBS’s capital requirements well above those faced by rivals in the United States, putting pressure on returns and reducing prospects for narrowing its long-term valuation gap. Even its long-standing premium rating relative to the European banking sector has recently evaporated.”