The share price of Credit Suisse plunged on Monday barely 24 hours after its rival UBS agreed to acquire it in a marked-down price in a deal backed by Swiss authorities.
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The deal announced late on Sunday was done partly to calming the markets on Monday, and indeed the European bank stocks and the wider market gained as investors, and most of them recovered from the early loses to close in green.
However, shares of Credit Suisse fell as much as 60% on Monday, trading at just 93 cents a share as of 11.08am Eastern time, according to a CBS report.
UBS shares initially fell on the Swiss stock exchange but had gained more than 6% in afternoon trading.
After years of heavy losses and costly scandals, Credit Suisse’s most recent share price plunge began with the collapse of U.S.-based Silicon Valley Bank and Signature Bank and was compounded when top investor the Saudi National Bank said it could not provide any more financial assistance.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
