Bank shares plummet as Credit Suisse rescue fails to quell contagion fears By Reuters

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Bank shares plummet as Credit Suisse rescue fails to quell contagion fears By Reuters
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⚠️BREAKING: *EUROPEAN STOCKS SINK ACROSS THE CONTINENT AS BANK SHARES PLUMMET DESPITE CREDIT SUISSE RESCUE 🇪🇺🇩🇪🇫🇷🇮🇹🇪🇸🇬🇧

Those sharp moves followed a day of heavy selling in Asian financial markets as early investor optimism about official efforts to stem a banking crisis quickly evaporated.

Under the deal, the Swiss regulator decided that Credit Suisse's additional tier-1 bonds - or AT1 bonds - with a notional value of $17 billion will be valued at zero, angering some of the holders of the debt who thought they would be better protected than shareholders in the takeover deal announced on Sunday.

The European Central Bank vowed to support euro zone banks with loans if needed, adding the rescue of Credit Suisse was"instrumental" in restoring calm. The deal will also make UBS Switzerland’s only global bank and the Swiss economy more dependent on a single lender.

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