$Credit Suisse Group AG(CS)$ bearish Bank stocks avoided another tumble Monday after the historic takeover of Credit Suisse Group AG, yet investor sentiment remains fragile following a $1 trillion plunge this month in global financial shares.
Shares prices initially slumped because the acquisition by UBS Group AG will wipe out holders of Credit Suisse’s riskiest bonds, potentially sending the $275 billion market for bank funding into a tailspin. Investors, though, took some comfort from the decisive steps by Swiss authorities over the weekend to end Credit Suisse’s years-long descent into turmoil, as well as efforts by US regulators to stabilize banks there.
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