The crisis bank's securities are rushing – top economist warns

The banking turmoil  

The crisis bank's securities are rushing – top economist warns  

Credit Suisse's riskiest bonds rebounded on news that UBS had agreed to buy Credit Suisse, Bloomberg reports. A sign that the markets seem to be heaving a sigh of relief, writes the news agency.  

At the same time, analysts warn of more turbulence. "Bonds and stocks may well be squeezed tomorrow," writes Allianz advisor Mohamed El-Erian on Twitter.  

Sources tell Bloomberg and the Financial Times that UBS agrees to buy Credit Suisse for roughly $2 billion. Earlier in the day, sources told Bloomberg that Credit Suisse snubbed a bid of around half the amount, up to $1 billion.

 

Michael Buholzer / AP  

The banking turmoil 

The banks confirm the purchase: The price tag will be 34 billion  

After much information about the price tag, the two banks confirm that UBS is buying Credit Suisse for 3 billion Swiss francs, writes Reuters. This corresponds to SEK 34 billion and is almost 60 percent lower than the stock market value of around SEK 84 billion the bank had at the close on Friday. 

Earlier on Sunday, media reported that Credit Suisse snubbed a bid of up to 1 billion dollars. Later, information came that UBS had accepted a price tag of just over 2 billion dollars.