Credit Suisse Share is now trading at its lifetime low and is down 99% from its peak in 2007. That too at a time when compatriot financial company UBS had announced to buy it for $3.25 billion.
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In the Adani Hindenburg case, the international bank which refused to accept Adani’s bond was Credit Suisse. 47 days have passed since then and the story has completely changed. Today the same bank is on the verge of being sold. The shares of Adani which took 4 weeks to fall, the shares of Credit Suisse have fallen more than that. Credit Suisse shares have plunged 75 per cent in just 8 trading days.
Credit Suisse plunged 99 percent from peak
If we talk about today, then a decline of about 65 percent has been seen. Credit Suisse’s stock is now trading at its lifetime low and is down 99 per cent from its peak in 2007. That too at a time when compatriot financial company UBS had announced to buy it for $3.25 billion. Shares of UBS have also seen a decline of about 16 per cent.
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Adani lost 10 lakh crores in two months
On the other hand, since the release of the Hindenburg Report on January 25, Adani Group’s shares have seen a joint 52 per cent market cap since then. In less than two months, the market cap of Adani’s shares has come down by about Rs 10 lakh crore.
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1 share of UBS for every 22.48 shares of Credit Suisse
Under the terms of the merger deal, all shareholders of Credit Suisse will receive 1 share of UBS for every 22.48 shares of Credit Suisse. The bank’s problems that have been going on for the past two years have come to the fore after Credit Suisse’s 2022 annual report identified internal control “material weeknesses” on financial reporting. As soon as depositors started withdrawing funds from the banking giant, the bank’s stock started crashing.
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Swiss regulator FINMA said it has been closely monitoring Credit Suisse for several months. The bank has taken several measures to stabilize the situation. These were not enough to instill confidence in the bank. By the way, more far-reaching options have also been explored. FINMA said that there was a risk of the bank becoming illiquid.
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