Credit Suisse shares still down 60%, UBS slips 12% after takeover announcement

Shares of Credit Suisse plunged 63 percent in early trading Monday after UBS announced it would buy its troubled rival for almost $3.25 billion in a deal orchestrated by regulators to stave off further market-shaking turmoil in the global banking system.

UBS shares were down 14 percent in early trading on the Swiss stock exchange. It must be noted that Credit Suisse shares were down 60 percent in pre-market trading in the US as well.

Swiss authorities urged UBS to take over its smaller rival after a plan for Credit Suisse to borrow up to 50 billion francs ($54 billion) failed to reassure investors and the bank’s customers. Shares of Credit Suisse and other banks plunged after the failure of two banks in the US raised questions about other potentially shaky global financial institutions.