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Well, That Didn't Take Long
Europe Not Impressed By Bank Merger
European stock markets lost no time in delivering their verdict on the forced merger between UBS and Credit Suisse: it sucks.
Credit Suisse shares collapsed by 60% at around 9:05 a.m. London time (5:05 a.m. ET), while UBS traded 10% lower.
Investors across the board have concluded the obvious: the bank merger solved nothing.
Investors and strategists say the turmoil in global financial markets still has room to run even after UBS Group AG’s agreement to take over of Credit Suisse Group AG, and the announcement of new dollar liquidity measures among central banks.
However, the banks and the regulators still have not addressed the core problem: underwater investments. Until they do, this crisis will continue to spread.
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