Fund managers remain short positions in Credit Suisse despite a multibillion-dollar lifeline by Swiss authorities and a potential takeover by rival UBS. Barry Norris, fund manager at Argonaut Capital, said Monday morning that he still expects Credit Suisse stock to be worthless. “Our view is that the end game is definitely UBS and saving Credit Suisse with the encouragement of the Swiss government/National Bank,” Norris told CNBC Pro after the Financial Times reported that UBS could take over all or part of Credit Suisse. Switzerland. “If this happens we expect it [Credit Suisse] have an effort to get zero, have a guaranteed deposit and probably but not certain that the bond holder will be made whole. Then, they buy back the stock later when the price is lower and make a profit on the difference. [short] position,” Norris, who manages both long and long/short equity funds, told CNBC’s “Squawk Box Europe” earlier this week. “The whole bank is in the wind-down essentially. Whether the wind is organized or not, the debate is now – nothing creates value for shareholders, in my opinion, “he said. year of losses for the broader stock market. Credit Suisse management is believed to be in talks this weekend. UBS or Credit Suisse did not comment on the report when contacted by CNBC. Norris stressed the importance of the bank’s situation being managed in an orderly manner. “If Credit Suisse had to release its balance sheet in an unscrupulous manner, the problem would spread to other financial institutions in Europe,” said Norris. On Wednesday, Credit Suisse CEO Ulrich Koerner thanked the Swiss regulator for the intervention of $ 54 billion. strategic to deliver value to clients and other stakeholders,” added the CEO. CSG.N-CH 5Y mountain Argonaut’s Norris noted that Credit Suisse is unique among European lenders in losing 38% of customer deposits in the last quarter of 2022. “No other bank has such an outflow of deposits. [like] at Credit Suisse. I think what the market is concerned about is how the outflow of deposits will accelerate in the last few weeks,” he said. Credit Suisse has been in turmoil for several years, battling various scandals and controversies. Its involvement with the collapsed supply chain finance company, Greensill Capital . Credit Suisse has invested heavily in Greensill and marketed funds to clients, but the company collapsed in 2021, causing Credit Suisse and its customers a loss of $ 1.7 billion and reputational damage. , Default in the hedge fund Archegos Capital caused another loss of $ 5.5 billion for the Swiss investment bank. The fallout from this and other controversies led to a decline in investor and customer confidence in Credit Suisse, with the bank losing billions of dollars in deposits. The impact on the European banking sector Norris also said that the possible closure of the Swiss lender could affect the bank- more European banks. sector g, due to its size and classification as “b systemically important ank.” The largest of the three US banks that failed so far in March had more than $200 billion in assets. In comparison, Credit Suisse reported in 2022 assets worth more than $ 572 billion – about twice as much as the former Wall Street banking giant Lehman Brothers when it failed in 2008. vulnerable from what is happening in the financial markets today.” Not everyone concern about contagion, though. Investment bank UBS is telling clients to invest in European banks rather than their American counterparts. “Last week’s sell-off was meaningless. We will see this reversal in all areas in the near future,” said UBS strategist led by Bhanu Baweja on March 13. led by relatively low valuations, higher distribution yields, more likely than [European Central Bank] keep rates longer, and some don’t match asset responsibilities.”