3/20, 2:03 PM (Source: TeleTrader)
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UBS turns to gains after ECB reaffirms rules

UBS Group AG recovered from sharp losses suffered earlier in the day and moved to positive territory on Monday as stock market participants reassessed the bank's agreement with its domestic competitor, troubled Credit Suisse Group AG.

Concerns about the rest of the European banking sector were sparked this morning by Swiss regulators' decision to write down $17 billion worth of Credit Suisse's additional tier 1 (AT1) bonds and leave bondholders unprotected in the takeover process, contrary to Eurozone regulations. The European Central Bank later reaffirmed its commitment to its rules and seemingly helped euro area banks either ease losses or move higher.

UBS's shares were up 1.75% at 1:55 pm CET after falling more than 15%. On the other hand, Credit Suisse remained deep in the red, plummeting 56.99% a minute later. Credit Suisse was down 56.03% in the United States premarket trading at 8:57 am ET.

Baha Breaking News (BBN) / MS