Destruction in the banking sector! Credit Suisse drowned itself, also drowned its savior

Switzerland has put all efforts to save its second largest bank Credit Suisse. Before the market opened, news came that UBS has agreed to buy it for around $3.25. It was believed that this would give some relief to Credit Suisse. But Credit Suisse’s stock plunged 63 per cent as soon as the market opened. Along with this, the shares of UBS have also declined by 14 percent. That is, in the process of saving Credit Suisse, now UBS is also in trouble. This has further deepened the banking crisis. Both these banks of Switzerland are included in the list of Global Systemically Important Banks. That is, these are the banks whose sinking can bring havoc in the financial system of the world. Banking Crisis started from America. After the collapse of Silicon Valley Bank, Signature Bank also collapsed there. Along with this, First Republic Bank is also on the verge of sinking. Not only this, according to a report, 186 banks in America are on the verge of collapse.

Swiss authorities announced that UBS would buy Bank Credit Suisse. Swiss President Alain Barset said the deal was a major step forward for the stability of the international financial sector. He said that an uncontrolled collapse of Credit Suisse would have caused huge problems for the country and the international financial system. Credit Suisse Chairman XL Lehman described the deal as a game changer. It was believed that this deal would strengthen the confidence of investors and stop the decline in Credit Suisse shares.

Outcry in the stock markets around the world

But as soon as the Swiss market opened, Credit Suisse shares plunged 63 per cent. According to Indian time, the shares of the company were trading down by 58.69 per cent at 3 pm. Similarly, UBS shares were trading with 9.61 per cent. US stock markets closed down on Friday due to deepening banking crisis and fears of recession. Its effect was also seen on the Asian markets today. Japan’s Nikkei closed at a two-month low. In Japan, the banking sector index declined by 1.88 percent. It has declined 13.6 per cent so far this month. In India too, the BSE Sensex has declined by 900 points.