Shares of Credit Suisse plunged 60.5 percent in early trading Monday after the announcement that banking giant UBS would buy its troubled rival for almost $3.25 billion in a deal orchestrated by regulators to stave off further market-shaking turmoil in the global banking system, reports AP.
UBS shares also were down 8 percent on the Swiss stock exchange.
Swiss authorities urged UBS to take over 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 plunged last week after the failure of two banks in the US raised questions about other potentially weak global financial institutions.
Markets remained jittery Monday despite the best efforts of regulators to restore calm. In the US, the Federal Deposit Insurance Corp. announced late Sunday that New York Community Bank has agreed to buy a significant chunk of the failed Signature Bank in a $2.7 billion deal.
Bd-pratidin English/Golam Rosul
