Credit Suisse (NYSE:CS) stock is falling hard on Monday after UBS (NYSE:UBS) agreed to buy the rival in a massive takeover offer.
UBS has agreed to take over Credit Suisse in a $3.2 billion deal. The company notes that its first actions after taking control of the troubled bank will be winding down Credit Suisse’s investment banking business.
Overall, analysts seem to believe that UBS acquiring Credit Suisse is a positive move for both companies. It prevents major damage to the Swiss market as well as Europe in general. However, there’s still plenty of trouble in the banking sector for investors to watch out for.
What’s Behind the CS Stock News?
The fall of Credit Suisse follows a banking crisis that was kicked off by SVB Financial’s (NASDAQ:SIVB) Silicon Valley Bank. The crash of this bank caused a domino effect that spread to several other regional banks as well as into Europe.
Waves from the failure of SVB Financial are continuing to affect other banks. The sector will likely continue to struggle as investors come to terms with the effects on the market. That means traders can expect more volatility from bank stocks in the near term.
CS stock is down 56.7% as of Monday morning.
Investors seeking more of the latest stock market news will want to stick around!
We’re covering all of the hottest stock market news traders need to know about on Monday! That includes what has Boxed (NYSE:BOXD), Loyalty Ventures (NASDAQ:LYLT) and other stocks moving this morning. We’ve got all that news at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.