European stocks fall, with banking shares down after UBS-‎Credit Suisse deal

European stocks fell on Monday, with Credit Suisse shares losing more than 60 percent after UBS agreed to buy its struggling rival in a $3.25 billion deal, implying Credit Suisse’s value is well below its market value and raising fears. from a widespread banking crisis

According to “Reuters”, the Stoxx 600 index of European shares fell 0.8 percent by 0807 GMT, after recording the largest weekly loss this year last Friday.

Credit Suisse shares plunged 62.3 percent after rival UBS said on Sunday it would pay 3 billion Swiss francs ($3.23 billion) to buy the 167-year-old bank, which is suffering a loss of up to $5.4 billion in a bailout package that overseen by Swiss regulators.

UBS shares fell 8.8 percent.

The banking sector index fell 5.8 percent in early trading.

Deutsche Bank shares lost 10.9 percent and Commerzbank 8.5 percent, while French BNP Paribas and Societe Generale shares lost about 8.2 percent and 7.5 percent, respectively.

Standard Chartered shares fell to the bottom of the Financial Times 350 index, recording a loss of 7.7 percent, while Natwest and Barclays shares fell 7.8 percent and 7.4 percent, respectively.