- Swiss crisis delivers Credit Suisse to UBS at balance price to avoid its collapse in the midst of the banking crisis
Banks begin another black week on the stock market. The rescue in extremis of Credit Suisse this weekend has not served to cut the bleeding of the sector in the markets and the losses are primed again with the entities in the midst of the financial storm that has unleashed the collapse of Silicon Valley Bank in the US.
The Ibex 35 has opened with a fall of 2% in the first stages of the day dragged by the collapse, one more day, of Sabadell (-7%) and the rest of the entities. Santander and Unicaja are around 5.7% down; CaixaBank, -4.5% and BBVA and Bankinter are around -4%.
The absorption at the price of Credit Suisse by its main competitor, the also Swiss UBS, does not seem to be enough to reverse the crisis of confidence that investors have maintained for more than a week. UBS stays with the entity for just over 3,000 million dollars, compared to the 8,000 million that Credit Suisse capitalized last Friday after losing 26% of its value in a week.
It is the agreement reached by the heads of both entities, the Swiss government and the country's supervisors and regulators after a weekend of frantic negotiations to avoid further contagion to the system. The market, for now, turns its back on that solution. UBS itself plunged more than 14% this morning, while Credit Suisse shares are down more than 63%.
The rest of the European stock markets have also started the session down, with falls of 1.1% in Paris, 1.4% in Frankfurt, 1.1% in London and 2.2% in Milan.
They follow the trend of the large Asian markets, where investors have also shown signs of not recovering confidence in financial stability. In Hong Kong, the Hang Seng index fell more than 3%, and on the Tokyo Stock Exchange, the main Nikkei index, closed the session with a loss of 1.42%.
According to The Trust Project criteria
Learn more