Credit Suisse shares slide 20% for second all-time low in second consecutive day

SHares of Credit Suisse After the collapse of, Wednesday’s record-breaking low was hit again. It fell over 20%. Silicon Valley Bank Last week.

Saudi National Bank is the largest investor in Swiss banks and said that it will not provide Credit Suisse any financial assistance.

SVB COLLAPSE: SHARES OF CREDIT SUISSE HIT NEW ALL-TIME LOW IN MORNING TRADING

“We cannot because we would go above 10%. It’s a regulatory issue,” Ammar Al Khaudairy, chairman of Saudi National Bank, told Reuters Wednesday.

Credit Suisse is one among many financial institutions experiencing financial instability following the fall of Silicon Valley Bank. The bank experienced a historic deposit run. Clients took $42 billion and the bank had a negative cash balance of $958 million by last Thursday. The stock market fell 60%.

Both the failure of Silicon Valley Bank Friday and the collapse of Signature Bank Sunday created uncertainty in the markets. After sharp declines on Wednesday, Italian banks such as UniCredit (Monte Dei Paschi) and Finecobank were subject to trading stoppage.

Credit Suisse announced Tuesday that “material weakness” It was found in the bank’s financial reports for 2021-2022. This led to a decline in shares. Tuesday marked the bank’s first ever record-breaking low in credit sharing. Falling 5%.

The bank revealed that it saw in 2022. “significantly higher withdrawals of cash deposits, non-renewal of maturing time deposits, and net asset outflows at levels that substantially exceeded the rates incurred in the third quarter of 2022.”

Over 110 billion Swiss francs were withdrawn by customers in the fourth quarter. Add to Credit Suisse suffers compliance failures and is subject to a number of scandals according to CNBC.

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Axel Lehmann, Credit Suisse Chairman, stated Wednesday morning in a panel session that a focus on de-risking the bank’s balance was underway. He stated that government assistance is an option in the future. “not the topic.”

“We are regulated, we have strong capital ratios, very strong balance sheet. We are all hands on deck,” Lehmann spoke. “So that’s not the topic whatsoever.”