Credit Suisse shares they tumbled 60.5% in early trading on Monday following the announcement that banking giant UBS would buy its troubled rival for nearly $3.25 billion in a deal orchestrated by regulators to prevent further turmoil in the global banking system.
UBS shares also fell 8% on the Swiss stock exchange.
Swiss authorities urged UBS to buy out its smaller rival after a plan for Credit Suisse to borrow up to 50 billion francs ($54 billion) failed to reassure investors and the bank’s customers.
Shares of Credit Suisse and other banks tumbled last week after the failures of two US banks raised questions about other potentially weak global financial institutions.
The markets they remained nervous on Monday despite the best efforts of regulators to restore calm. In the United States, the Federal Deposit Insurance Corporation announced Sunday evening that the New York Community Bank has agreed buy a significant part of the failed Signature Bank in a $2.7 billion deal.
Mary Ortiz is a seasoned journalist with a passion for world events. As a writer for News Rebeat, she brings a fresh perspective to the latest global happenings and provides in-depth coverage that offers a deeper understanding of the world around us.