Credit Suisse shares sink as key investor denies more money
Zurich, March 15
Credit Suisse lost almost a quarter of its value on Wednesday, dropping to a new record low after its largest investor said it could not provide the Swiss bank with more financial assistance. “We cannot, because we would go above 10%. It’s a regulatory issue,” Saudi National Bank chairman Ammar Al Khudairy said on Wednesday.
The Saudi lender acquired a stake of almost 10% last year after taking part in Credit Suisse’s capital raising and committed to investing up to 1.5 billion Swiss francs ($1.5 billion).
Broader equity markets fell sharply, reversing earlier gains, as Credit Suisse’s drop by as much as 24% re-ignited some of the jitters among investors about the resilience of the global banking system after the collapse of Silicon Valley Bank.
Ralph Hamers, CEO of Swiss rival UBS said the lender has benefitted from recent market turmoil and seen money inflows. — Reuters
Tumble nearly 24%
- Switzerland’s second-biggest bank is seeking to recover from a string of scandals that have undermined the confidence of investors and clients
- The shares fell below the 2-Swiss franc mark for the first time in Zurich as they headed for a seventh straight daily decline
