Shares of Credit Suisse plunge 60.5 percent after announcement that banking giant UBS would buy its troubled rival for $3.25 billion in a deal orchestrated by regulators
Credit Suisse is among 30 financial institutions known as globally systemically important banks, and authorities were worried about the fallout if it were to fail.
Global stock markets sank, with Hong Kong’s main index sliding more than 3 percent. Market benchmarks in Frankfurt and Paris opened down more than 1 percent, with European banking stocks dropping more than 2 percent. Shanghai, Tokyo and Sydney also declined. Wall Street futures were off 1 percent. UBS is bigger but Credit Suisse wields considerable influence, with $1.4 trillion in assets under management. It has significant trading desks around the world, caters to the rich through its wealth management business, and is a major mergers and acquisitions advisor. The bank did weather the 2008 financial crisis without assistance, unlike UBS.
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