Swiss banking giant UBS (NYSE: UBS) has acquired its troubled competitor Credit Suisse (NYSE: CS) for $3 billion in one of the most significant banking M&A deals since the financial crisis.
Global bank stocks came under pressure following the tie-up, which was engineered by regulators.
Despite bold proclamations about a return to stability, the sale of Credit Suisse to UBS does not appear to have laid to rest contagion concerns.
Oil prices and global shares fell after UBS unveiled plans to buy its struggling Swiss rival Credit Suisse for $3.2 billion over the weekend.
UBS struck a $3.25 billion Swiss government-brokered deal to acquire its troubled peer Credit Suisse on Sunday.
First Republic shares sank in Monday's premarket trading as UBS's takeover of Credit Suisse ignited market fears of a banking crisis and S&P cut the US lender's debt ratings again.
US stock futures tumbled Monday as worries about a bank crisis persisted, even after UBS was forced to take over Credit Suisse to try to avert more trouble.
UBS shares fell almost 14% on Monday after the bank's $3.2 billion "emergency rescue" of embattled domestic rival Credit Suisse.
Credit Suisse shares CSGN, -8.01% dropped 72% in opening trade, after agreeing to be bought by rival UBS in a deal underwritten by Swiss authorities. The steep share price drop came as Credit Suisse a
Credit Suisse staff arriving to work in Hong Kong and Singapore on Monday morning fretted about retrenchments and retaining business after larger Swiss rival UBS agreed to swallow the 167-year-old ban
UBS Group AG (NYSE:UBS) will take over its embattled Swiss rival Credit Suisse Group AG (NYSE:CS) for US$3.25 billion following crunch talks on Sunday aimed at stopping the stricken bank from triggeri
Credit Suisse is also telling staff that their roles are "not immediately impacted" after UBS sealed a deal to acquire the 167-year-old lender.
Shares in Credit Suisse dropped 61.95% in premarket trading in Zurich on Monday after rival UBS agreed at the weekend to take over the 167-year old bank for $3 billion.
UBS can handle the risks from taking over Swiss rival bank Credit Suisse , UBS Chief Executive Ralph Hamers told broadcaster SRF.
Cyrus Daruwala of IDC Financial Insights discusses UBS' deal to buy Credit Suisse in a $3.2 billion takeover.
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