Bob Michele, the chief investment officer of fixed income at JP Morgan Asset Management, said he’s hopeful that UBS Group AG’s deal to buy its troubled Swiss rival Credit Suisse will be enough to stave off a wider selloff in European banks this week.

Holders of riskier AT1 bonds, which are wiped out under deal with UBS, consider legal action.

UBS Group AG agreed to buy Credit Suisse Group AG in a historic, government-brokered deal aimed at containing a crisis of confidence that had started to spread across global financial markets.

Shares in the midsized lender continued to tumble as fears grow about First Republic's financial health grow even after it received a $30 billion lifeline from its bigger rivals last week.

Recruiters across the world are getting an unprecedented flood of calls from Credit Suisse Group AG bankers seeking new jobs as the embattled Swiss lender is set to be taken over by UBS Group AG.

Talks to contain the crisis of confidence in Credit Suisse Group AG extended into Sunday, with Swiss officials and UBS Group AG racing to put together a deal to take over or break up the battered lender before markets open in Asia.