Credit Suisse shares dove 63 percent in early trading Monday to a new low after it was announced that UBS would buy the troubled bank in a multi-billion-dollar deal backstopped by a Swiss central bank $100 billion emergency credit line.
Shares of Credit Suisse clawed back some of the initial losses Monday morning and at the time of reporting were 59 percent down on the day, as investors digested news that UBS would be taking over its distressed peer in a state-backed takeover.
The rescue deal sees UBS buying the 167-year-old Credit Suisse for around $3.23 billion and absorbing up to $5.4 billion in losses.
“With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation,” Swiss National Bank (SNB) said in a statement….