UBS Group Shares Drop by 7% Following Takeover
UBS Group AG (UBSG.S) shares fell 7% as investors questioned the deal's long-term benefits and the future of Swiss banks, previously considered models of sound banking.
UBS Acquires Credit Suisse for 3 Billion Swiss Francs
Swiss regulators orchestrated a package in which UBS will pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse Group AG (CSGN.S) and assume up to $5.4 billion in losses.
Credit Suisse Bondholders Face Losses, Heightening Anxiety
Investor focus shifted to the significant losses Credit Suisse bondholders will face, adding to concerns about contagion and the fragile state of U.S. regional lenders.
European Bank Shares Slide; Major Lenders Decline
European bank shares dropped, with an index of leading lenders (.SX7P) down 2.3%. Deutsche Bank (DBKGn.DE), Commerzbank, and BNP Paribas (BNPP.PA) experienced declines of 3.1%, 3.3%, and 3.7%, respectively.
Bank Debt Insurance Costs Rise Amid Market Turmoil
The cost of insuring exposure to European lenders' debt increased, with UBS's credit default swap widening to 153 basis points from 117 bps, according to S&P Global Market Intelligence data.
Central Banks Pledge Dollar Liquidity to Stabilize Financial System
Investors appeared unresponsive despite promises from top central banks to provide dollar liquidity for financial system stabilization.
Swiss Banking Sector Crisis: Credit Suisse's AT1 Bonds Valued at Zero
The Swiss regulator decided that Credit Suisse's additional tier-1 (AT1) bonds with a notional value of $17 billion will be valued at zero, infuriating some debt holders who believed they were better protected than shareholders.
UBS-Credit Suisse Deal Raises Questions for the Swiss Economy
The acquisition of Credit Suisse will make UBS Switzerland's only global bank, increasing the Swiss economy's dependency on a single lender.