UBS stock

Investors and banking industry analysts were still digesting the deal, but at least one analyst suggested it might tarnish Switzerland's global banking ...

bank collapses and the danger to Credit Suisse was “an international banking crisis in the making.” “The banking system of Europe has not fully recovered from the crisis” in 2008, he said. The deal follows the collapse of two large U.S. As part of the deal, approximately 16 billion francs (US$17.3 billion) in higher-risk Credit Suisse bonds will be wiped out, leaving investors with hefty losses. Shares of Credit Suisse and other banks had tumbled last week after the failure of two banks in the U.S. Swiss authorities urged UBS to take over its smaller rival after a central bank plan for Credit Suisse to borrow up to 50 billion francs (US$54 billion) last week failed to reassure investors and customers. Swiss regulators orchestrated the purchase in a bid to stop more turmoil after the collapse of two U.S. But concerns about risks to the deal, losses for some investors and Credit Suisse’s falling market value could renew fears about the health of banks. In an indication of the frantic, behind-the-scenes deal-making by Swiss authorities to resolve the issue before markets opened, the acquisition was announced late Sunday. The deal added volatility to other European bank stocks, which fell in early trading even as benchmark indexes climbed, before some clawed back their losses. But European bank stocks and the wider market gained as investors watch whether moves to shore up banks will stem further upheaval in the global banking system. [Credit Suisse](https://globalnews.ca/tag/credit-suisse), whose woes stem from questions over its internal controls, fell 60 per cent a day after UBS said it would buy the fellow Swiss bank for a lowball price of three billion Swiss francs (US$3.25 billion).