UBS's Acquisition of Credit Suisse Sparks Controversy.

UBS' planned takeover of Credit Suisse has calmed the market slightly, with UBS shares rising 1.02% and banking stocks in the pan-European index, Stoxx 600, up 1.3%. However, owners of Credit Suisse's additional tier one bonds, worth $17 billion, are now worth nothing, and Saudi National Bank confirmed it lost around 80% of its investment in Credit Suisse, a loss of over $1 billion. Meanwhile, JPMorgan Chase is advising First Republic Bank on strategic alternatives such as raising capital or attempting a sale, after Standard & Poor's cut its credit rating to B+ from BB+. Analysts warn that a Minsky moment could be on the horizon, as market instability increases and the banking crisis causes regional banks to reduce their loans.