Connect with us

Business

Shares Of Credit Suisse Tank After Saudi Arabia Rules Out Further Assistance

Avatar of Salman Ahmad

Published

on

Shares Of Credit Suisse Tank After Saudi Arabia Rules Out Further Assistance

(CTN News) – A top investor in Credit Suisse said it couldn’t provide any more cash because of regulatory restrictions, sending the shares to a fresh all-time low for the second straight day.

Several times throughout the morning, the bank’s stock was halted as it fell below 2 Swiss francs ($2.17).

Credit Suisse shares ended the session down 24% after dropping more than 30% earlier.

In the wake of Silicon Valley Bank’s downfall, European lenders were already in a sell-off due to a broader sell-off. France’s Societe Generale, Spain’s Banco de Sabadell, and Germany’s Commerzbank all declined.

On Wednesday, automatic trading stoppages also occurred at UniCredit, FinecoBank, and Monte dei Paschi.

The biggest investor in Credit Suisse, Saudi National Bank, said it couldn’t give the Swiss bank any more money, according to Reuters.

We can’t go above 10%. Ammar Al Khudairy, chairman of the Saudi National Bank, said it was a regulatory issue. The SNB is happy with Credit Suisse’s transformation plan, and he thinks the bank won’t need extra money.

Saudi National Bank bought 9.9% of Credit Suisse last year as part of the Swiss lender’s $4.2 billion capital raise to improve investment banking performance and address a litany of risks and compliance issues.

Reuters reported that Ulrich Koerner, CEO of Credit Suisse, said the bank’s liquidity basis is “very, very strong.”

“We meet and exceed all regulatory requirements,” Koerner said.

Credit Suisse Chairman Axel Lehmann declined to comment on whether his firm might need government assistance in the future when speaking to CNBC’s Hadley Gamble on Wednesday morning.

Lehmann said, “That’s not the topic.” when asked if he would rule out any kind of help.

“We’re regulated, we have strong capital ratios, and we have a very strong balance sheet. All hands on deck. That’s not the topic at all.”

Credit Suisse’s share price move didn’t get a reaction from the Swiss National Bank.

Weaknesses in materials

Investors are also assessing the impact of the bank’s announcement on Tuesday that it found “material weaknesses” in its financial reporting processes.

The second-largest Swiss lender made the observation in its annual report, which was originally scheduled for last Thursday but was delayed by the SEC.

It was discussed with the SEC “technical assessment of previously disclosed revisions to the consolidated cash flow statements for 2020 and 2019, as well as related controls.”

A bank disclosed in late 2022 that it saw “significantly higher withdrawals of cash deposits, non-renewals of maturing time deposits, and net asset outflows than in the third quarter.”

In the fourth quarter, Credit Suisse saw withdrawals of more than 110 billion Swiss francs due to scandals, legacy risk and compliance problems.

SEE ALSO:

Tesla’s Arrival Accelerates The Nearshoring Boom In Mexico

Facebook Owner Meta Axes Another 10,000 Jobs Worldwide

Continue Reading

CTN News App

CTN News App

Recent News

BUY FC 24 COINS

compras monedas fc 24

Volunteering at Soi Dog

Find a Job

Jooble jobs

Free ibomma Movies