Banking stocks on the FTSE 100 and oil prices have tumbled after the historic state-backed rescue of troubled lender Credit Suisse by Swiss rival UBS Group.
In a package orchestrated by Swiss regulators on Sunday, UBS Group will pay 3 billion Swiss francs (£2.7bn) for 167-year-old Credit Suisse and assume up to $5.4bn (£4.4bn) in losses.
However, banking stocks across the FTSE 100 and FTSE 250 plunged 6.2pc after the open, following falls on Asian markets as Credit Suisse bondholders took a massive hit.
Meanwhile, oil prices have sunk to their lowest level in two years as escalating investor concerns about the crisis in global banks eroded appetite for riskier assets such as commodities.
Brent crude, the international benchmark, has slumped 3.1pc already today towards $70 a barrel, where prices have not been since March 2021.
Under the Credit Suisse deal, the Swiss regulator decided so called additional tier-1 bonds - or AT1 bonds - with a notional value of $17bn will become worthless, creating new worries about the risks of high-yield debt issued by big banks.
Standard Chartered and HSBC shares each fell more than 6pc in Hong Kong to more than two-month lows, with HSBC facing the possibility of posting its largest one-day drop in six months.
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2023-03-20 07:42:52Z
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