Credit Suisse shares tumble 60% as its UBS rescue deal fails to calm bank-crisis jitters
in a deal valued at 3 billion Swiss francs , which will see it take on up to $5.4 billion in its former rival's losses. The move was orchestrated by Swiss regulators, the latest in government efforts around the world to stave off a brewing bank crisis. in Credit Suisse tumbled 54.3% to 0.85 Swiss francs at last check, dropping as much as 60% in premarket trading. US-listed shares in the financial giant were 53.2% lower at $0.94.
Meanwhile, UBS shares were up 3.4% in Zurich to 17.70 Swiss francs, after falling as much as 16% in premarket trading. The US-listed stock was 4.3% higher at $18.92, having fallen in premarket trading. Shareholders in Credit Suisse face big losses, with its acquisition price pegged at 99% below its peak in 2007, according to Bloomberg. Holders of Credit Suisse's AT1 bonds will also take a hit, as they are being written down after the Swiss regulator decided to reduce their value from 16 billion Swiss francs to zero.
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