Deal for UBS to buy Credit Suisse sends shares tumbling

Shares of Credit Suisse plunged 60.5% on Monday after banking giant UBS said it would buy its troubled Swiss rival for almost $3.25 billion in a deal orchestrated by regulators to try to stave off further turmoil in the global banking system, according to a report from the Associated Press.

UBS shares also were down nearly 5% on the Swiss stock exchange.

Swiss authorities urged UBS to take over its smaller rival after a central bank plan for Credit Suisse to borrow up to 50 billion francs ($54 billion) last week failed to reassure investors and customers. Shares of Credit Suisse and other banks had plunged last week after the failure of two banks in the U.S. raised questions about other potentially weak global financial institutions.

Markets remained jittery Monday despite efforts of regulators to restore calm. In the U.S., the Federal Deposit Insurance Corp. said late Sunday that New York Community Bank agreed to buy a significant chunk of the failed Signature Bank in a $2.7 billion deal.

Global stock markets sank, with European banking stocks dropping more than 2%. Wall Street futures were off 1%.