Credit Suisse Shares Slump Almost 60% in Premarket Trading After UBS Deal

Tiger Newspress2023-03-20

Shares in Credit Suisse dropped almost 60% in premarket trading Monday after rival UBS agreed at the weekend to take over the 167-year old bank for $3 billion.

"The next few hours of trading will give us a better picture on whether the crisis is contained," Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, said.

"In theory, there is no reason for the Credit Suisse crisis to extend, as what triggered the last quake for Credit Suisse was a confidence crisis – which doesn't concern UBS - a bank outside of the turmoil, with, in addition, ample liquidity and guarantee from the SNB and the government." SNB refers to the Swiss National Bank.

In a package orchestrated by Swiss regulators on Sunday, UBS will pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse and assume up to $5.4 billion in losses.

($1 = 0.9274 Swiss francs)

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