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Home News Credit Suisse stock nosedives 65%, UBS falls nearly 16% as investors digest...

Credit Suisse stock nosedives 65%, UBS falls nearly 16% as investors digest $3.25 billion merger deal

Once UBS, a bank based in Switzerland, agreed to save Credit Suisse for $3.25 billion, banking stocks suffered globally. The merger was finalized after both firms were urged to do so by the nation’s regulators, who wished to restore the stability and confidence that had been lost in the Swiss banking industry and economy. Investors, meanwhile, have taken a pessimistic stance toward both UBS and Credit Suisse.

The share price of Credit Suisse was CHF 0.78 at the time of writing, down 58.15%. The stock, however, experienced a sharp loss of 64.52% in early trading, reaching an intraday low of CHF 0.66.

UBS Group’s stock price reflected the same sentiment, despite the fact that its sales were far smaller than Credit Suisse’s.

The price of UBS stock, which is currently down 9.40%, is $32.95. In early trades, the stock dropped from the previous close to a low of $32.86 by at least 15.96%.

On Friday of last week, UBS stock was trading at $36.37 and Credit Suisse stock was around CHF 1.86.

Both UBS and Credit Suisse announced acquisition agreements on Sunday. UBS will remain in existence. Credit Suisse will be purchased by the bank with its headquarters in Zurich for CHF 3 billion (about $3.25 billion).

The action was taken as a result of the failure of the Swiss National Bank’s proposal to lend 50 billion Swiss francs to Credit Suisse to boost waning investor confidence. To regain public trust in the economy and banking system, the Swiss Federal Department of Finance, the Swiss National Bank, and FINMA requested merger agreements from UBS and Credit Suisse.

Also Read: Multibagger stock: Century Plyboards shares hit 52-week low & 58% potential rise

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