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Credit Suisse Rescued By Swiss Rival UBS for $3 Billion

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Credit Suisse Rescued By Swiss Rival UBS for $3 Billion

Credit Suisse has been rescued by its Swiss rival UBS in a government-backed deal on Sunday. The announcement came after a weekend of emergency talks between the two banks and Switzerland’s financial regulators in Switzerland.

UBS Group AG, founded and headquartered in Switzerland, is a multinational investment bank and financial services firm. According to the Swiss National Bank, the agreement is the best way to restore financial market confidence and manage economic risks.

The Bank of England welcomed the “comprehensive set of actions,” the BBC reported.

Credit Suisse shareholders will receive one share in UBS for every 22.48 shares they own, valuing the bank at $3.15 billion (£2.6 billion).

Credit Suisse was valued at around $8 billion (£6.5 billion) at the close of business on Friday.

However, the agreement accomplished what regulators set out to do: secure a result before the financial markets opened on Monday.

In a statement, Switzerland’s central bank said, “a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation”.

To mitigate any risks for UBS, the federal government announced a $9.6 billion (£7.9 billion) guarantee against potential losses. The Swiss central bank has also offered up to $110 billion (£90 billion) in liquidity assistance.

Credit Suisse

Global financial institutions quickly applauded the transaction between Credit Suisse and UBS.

The Bank of England said it welcomed the “comprehensive set of actions” set out by the Swiss authorities.

“Throughout the preparations for today’s announcements, we worked closely with international counterparts and will continue to support their implementation.”

It said the UK banking system was “well capitalized and funded and remains safe and sound”.

The UK Treasury also said it welcomed the merger and the British government would continue to engage with the Financial Conduct Authority (FCA) and the Bank of England “as is usual”.

Because both UBS and Credit Suisse have operations in London, the FCA said on Sunday that it was “minded to approve” the takeover to support financial stability.

“The FCA remains closely engaged with UK and international regulatory partners to monitor market developments,” the watchdog said.

Credit Suisse

Christine Lagarde, President of the European Central Bank, said she welcomed the “swift action” of the Swiss authorities.

“They are instrumental in restoring orderly market conditions and ensuring financial stability. “The eurozone banking sector is resilient, with strong capital and liquidity positions,” stated Ms. Lagarde.

The remarks of the European Central Bank President were echoed in the United States.

Treasury Secretary Janet Yellen and Federal Reserve Board Chairman Jerome Powell said the Swiss authorities’ announcement supported “financial stability”.

“The US banking system’s capital and liquidity positions are strong, and the US financial system is resilient,” they said.

Credit Suisse is the latest and most significant casualty of a confidence crisis that has already resulted in the failure of two mid-sized US banks and an emergency industry whip-round for another. But this is not the case. Switzerland’s second-largest lender was considered one of the world’s top 30 most important banks, so the Swiss authorities rushed through this takeover.

Although the causes of each failure vary slightly, the main factor has been a sharp rise in global interest rates, which has reduced the value of even safe investments in which banks keep some of their money. This has alarmed investors, causing all bank share prices to fall, with the weakest banks suffering the most.

The EU, US, and UK financial authorities have supported this agreement, emphasizing that banks are strong and people’s savings and deposits are secure. The acid test for whether this Swiss rescue has calmed financial markets will be when they open on Monday, so completing this on Sunday night was critical.

Credit Suisse

Following the announcement on Sunday night, UBS chairman Colm Kelleher said Credit Suisse was a “very fine asset we are determined to keep” in Bern, Switzerland.

“This acquisition is appealing to UBS shareholders, but let us be clear: this is an emergency rescue for Credit Suisse,” he added.

Mr. Kelleher stated that UBS would acquire Credit Suisse’s investment banking division.

The chairman of UBS said it was “too early” to predict what would happen to jobs: “We need to do this in a rational and thoughtful way after we’ve sat down and analyzed what we need to do,” he said.

The weekend deal comes after the Swiss National Bank’s emergency $54 billion (£44.5 billion) lifeline on Wednesday failed to reassure markets, and Credit Suisse shares fell 24%, sparking a wider sell-off on European markets.

The 167-year-old bank is losing money and has had many problems recently, including allegations of money laundering.

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Disney Plus Announces Crackdown On Password Sharing In Canada In 2023

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NEW YORK — Today, password-sharing crackdowns are becoming increasingly prevalent in the streaming industry. In addition, Disney Plus follows suit.

In an email sent to Canadian users this week, Disney announced restrictions on the “ability to share your account or credentials outside of the household.”

The updated Canadian Subscriber Agreement for Disney Plus stipulates that users may only share a subscription within their domicile if permitted by their account tier and that violations may result in Disney Plus limiting or terminating service. According to the streamer’s help center, “Household” refers to the collection of devices associated with a subscriber’s principal residence and used by the residents.

These password-sharing restrictions are part of multiple revisions to the Disney Plus Subscriber Agreement that will go into effect on November 1 for most Canadian users. According to this week’s email, annual subscribers in Quebec may see the changes a bit later, depending on their billing cycle, while users who alter their plan before November 1 will see the changes take effect immediately.

As previously disclosed in August, Disney Plus will launch its ad-supported tier offerings in Canada and select European markets on November 1. The ad-supported tier of Disney Plus has been available in the U.S. since December 2022.

disney plus

Disney Plus Announces Crackdown On Password Sharing In Canada

When contacted by The Associated Press, a Disney Plus spokesperson declined to comment on whether similar domestic restrictions could be anticipated in countries other than Canada.

In a recent earnings call, Walt Disney Co. CEO Bob Iger pledged to make the company’s streaming services profitable, notably through an October price increase on its ad-free Disney+ and Hulu plans in the U.S. and a restriction on password sharing that is expected to last through 2019.

At the time, Iger did not elaborate on the password-sharing crackdown beyond stating that Disney could reap some benefits in 2024, although he added that the work “might not be completed” by then and that Disney could not predict how many password-sharing users would switch to paid subscriptions.

New restrictions on streaming extend far beyond Disney. Netflix, for instance, made headlines when it began clamping down on password sharing. Freeloading viewers are now required to open their accounts in the United States unless a subscriber with a standard or premium plan agrees to pay a $8 monthly surcharge to enable more people from different households to watch.


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Man Wanted In Killing Of Baltimore Tech Entrepreneur Pava LaPere Is Arrested, Police Say

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BALTIMORE — Officials said Thursday that police had been searching for the man arrested in a Baltimore tech entrepreneur slaying since last week as a suspect in a separate rape and arson.

Jason Billingsley, charged with first-degree murder in the death of Pava LaPere, 26, was released from prison in October 2016 after accumulating good behavior credits to reduce his sentence for a 2013 sexual assault.

Commissioner of the Baltimore Police Department Richard Worley stated at a news conference on Thursday that detectives believe LaPere was murdered on Friday evening, even though her body was not discovered until after she was reported missing on Monday. The Johns Hopkins University graduate, who founded the tech startup EcoMap Technologies while still a student, was discovered deceased in her flat complex with signs of blunt force trauma.

Brandon Scott, the mayor of Baltimore, questioned why Billingsley was released from prison so soon after his sexual assault conviction, but he noted that police are only one component of a larger system that includes prosecutors, courts, and prisons.\

“We are aware that we are discussing a system with which we must also contend,” he said.

Worley stated that investigators are evaluating all open cases since Billingsley’s release in October 2022 to determine whether any connections exist.

This violent criminal offender and repeat offender will be returned to prison, where he belongs, Worley stated. Now, let’s all collaborate to ensure that he stays there.
The family of LaPere thanked the city police and their law enforcement colleagues for their “tireless efforts” during the investigation and capture of the suspect.


Man Wanted In Killing Of Baltimore Tech Entrepreneur Pava LaPere Is Arrested, Police Say.

“We’re relieved to know he can no longer hurt other innocent victims,” the family said. While this does not alter the fact that Baltimore lost one of its most devoted and influential admirers, we will continue to honor Pava Marie’s life, achievements, and legacy.

According to an application for an arrest warrant, the victim in the 2013 case told police that during the assault, he displayed a knife and strangled her. Ivan Bates, the state’s attorney for Baltimore City, stated that Billingsley pleaded guilty in 2015 to first-degree sex assault, for which state guidelines prescribe a sentence of 15 to 25 years, but Billingsley received a sentence of 30 years with all but 14 years suspended as part of a plea agreement.

Bates stated that the judge who sentenced Billingsley hesitated before approving the plea agreement reached between prosecutors and Billingsley’s counsel. However, the judge ultimately approved the terms of the agreement.

According to court documents, Billingsley was convicted of second-degree assault in 2011 and first-degree assault in 2009.

Police say Billingsley is also a suspect in a rape, attempted murder, and arson that occurred in Baltimore on September 19. Within hours of the crime, a warrant was issued for Billingsley, and detectives have been actively searching for him ever since, including through his mobile and social media use, interviewing witnesses and monitoring his known addresses, according to Worley.

“When we held a press conference about the death of LaPere, we were approximately 88 metres away from capturing the suspect, but he was able to evade capture,” Worley said.

According to Worley, Billingsley knew the victims of the September 19 incident, which was not a random act, but the department did not warn the public about Billingsley at the time. According to him, the police have no reason to suspect LaPere knew Billingsley.


Man Wanted In Killing Of Baltimore Tech Entrepreneur Pava LaPere Is Arrested, Police Say.

“I hope this sends a message to anyone else who enjoys committing these kinds of cowardly, heinous acts that we will not tolerate it and will remove you from the streets of Baltimore,” said the mayor of Baltimore, Brandon Scott.

The public defender’s office, which has previously represented Billingsley, told The Associated Press on Tuesday that it was too soon to comment on this case. Thursday morning, the office waited to respond to an email seeking comment on behalf of Billingsley.

Bates stated that if a grand jury returns an indictment, his office will pursue a life sentence without parole.

“If this person is found guilty in a court of law, he or she will never again be able to harm any of the citizens of our fine city,” Bates said.

LaPere, named to Forbes’ 30 under 30 list for social impact earlier this year, was remembered at a vigil on Wednesday evening as someone who remained committed to building community and using entrepreneurship to create meaningful social change even as her national profile increased.

LaPere remained committed to the philanthropic endeavors that initially inspired her as she developed EcoMap, a platform that uses technology to curate data and make it more accessible throughout social ecosystems.

Frank LaPere, her father, told the crowd of more than 100 people assembled for the vigil, “She knew exactly what she wanted to accomplish, and nothing could stand in her way.”

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Netflix’s DVD-By-Mail Service Bows Out As Its Red-And-White Envelopes Make Their Final Trip

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Netflix’s once-iconic DVD-by-mail service is finally coming to an end, a quarter century after two Silicon Valley visionaries came up with the idea that destroyed Blockbuster video stores while paving the way for video streaming, which has revolutionized the entertainment industry.

After its five remaining distribution centers in California, Texas, Georgia, and New Jersey mail their final discs on Friday, the DVD service that has consistently declined in the shadow of Netflix’s video streaming service will cease operations.

Less than one million remaining DVD service subscribers can retain the final discs that arrive in their mailboxes.

Longtime Netflix DVD subscriber Amanda Konkle said on Thursday as she awaited the arrival of her final disc, the 1971 British horror film “The Nightcomers” starring Marlon Brando, “It’s sad.” “It makes me feel sentimental. Acquiring these DVDs has been an integral part of my regimen for decades.


Netflix’s DVD-By-Mail Service Bows Out As Its Red-And-White Envelopes Make Their Final Trip

Some of the remaining DVD enthusiasts will receive up to ten discs as a farewell gift, including 41-year-old Konkle, who has viewed more than 900 titles since joining the service in 2006. In the hopes of being selected for the 10 DVD giveaway, Konkle prioritized Brando films and older films that are difficult to locate on streaming services in her queue.

At its height, the DVD had 16 million subscribers who could choose from more than 100,000 titles. But in 2011, Netflix decided to separate its DVD business from its streaming business, which now claims 238 million subscribers worldwide and generates $31.5 billion in annual revenue.

On the other hand, the DVD service generated only $146 million in revenue last year, making its eventual closure inevitable against the backdrop of intensifying competition in video streaming, which has compelled Netflix to cut costs to increase profits.

“It’s bittersweet,” Netflix’s CEO Marc Randolph said when the company delivered its first DVD, “Beetlejuice,” in April 1998. “We knew this day was coming, but the miraculous thing is that it didn’t come 15 years ago.”


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