SVB collapse: Credit Suisse shares soar following two-day decline

Credit Suisse sAfter the announcement by the Swiss National Bank that it would borrow more than $50 billion, hares rose on Thursday

Shares rose up to 33% after falling 30% on Wednesday before reaching a 25% gain. Following the collapse at Silicon Valley Bank in the United States, the bank saw two record lows. Although they are not directly connected, the effect on Swiss bank stocks from investor fear regarding the bank’s failure in California was amplified.

CREDIT SUISSE SHARES SLIDE 20% FOR SECOND ALL-TIME LOW IN SECOND CONSECUTIVE DAY

Credit Suisse shares dropped, making it the second-largest Swiss bank. This also caused other European banks to drop their shares. The European banks experienced a slight recovery on Thursday with Euro Stoxx Banks increasing 1.6% and banks like Commerzbank and Santander, UniCredit and Raiffeisen rising over 2%. Associated Press.

Saudi National Bank, Credit Suisse’s largest shareholder, stated on Wednesday that it would not provide any additional assistance. Within hours of the offer being made, $53.7 billion was accepted by the Swiss National Bank.

“This additional liquidity would support Credit Suisse’s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs,” According to the bank.

Axel Lehmann Credit Suisse Chairman stated in a panel discussion Wednesday morning that there is an emphasis on de-risking bank’s balance and that the bank has a plan. “already took the medicine” To reduce risk

He suggested that government assistance is possible 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 stated. “So that’s not the topic whatsoever.”

Stock shares in other U.S. banks are also falling, as are European shares. Dow Jones Industrial Average futures stock fell more than 600 points. Citigroup and Wells Fargo both lost 3% each, while Goldman Sachs fell 2% and Bank of America fell by 2%.

Fears about the strength and stability of financial institutions arose following the collapse of Silicon Valley Bank last week. The bank had a nearly billion-dollar deficit in cash. The Federal Reserve, Justice Department, and Securities and Exchange Commission are all investigating and reviewing the bank failure.

Janet Yellen, Treasury secretary to the Senate Finance Committee will testify before the Senate Finance Committee Thursday. She is expected reassure Congress that the U.S. banks system is sound. “remains sound” After a week of financial turmoil.

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“I can reassure the members of the committee that our banking system remains sound and that Americans can feel confident that their deposits will be there when they need them,” According to Yellen’s prepared remarks transcript.

“This week, the government took decisive and forceful actions to strengthen public confidence in our banking system,” Yellen will likely refer to the work of the Treasury Department and the Federal Deposit Insurance Corporation in protecting all depositors.