Shares in Credit Suisse plummeted by as much as 30% after its largest shareholder, Saudi National Bank, said it could not provide further support due to regulatory grounds. The bank's CEO, Ulrich Koerner, assured investors that the bank's liquidity base remained strong and was above all regulatory requirements. The falls in Credit Suisse's market value also triggered ECB officials to contact lenders it supervises about their financial exposures to Credit Suisse, while French Prime Minister Elisabeth Borne stated that her country's finance minister would speak with his Swiss counterpart. Exane analysts suggested that a bailout by the Swiss National Bank and financial regulator Finma, possibly with one or more other banks, was the "most likely scenario" facing Credit Suisse. The bank had identified "material weaknesses" in controls over financial reporting and had not yet stemmed customer outflow. The cost of insuring the company's bonds against default surged, and the situation has raised concerns about the resilience of the global banking system.
#CreditSuisse #SaudiNationalBank #BankingCrisis
Credit Suisse, shareholder, Saudi National Bank, regulatory grounds, market value, European Central Bank, financial reporting, customer outflow, banking crisis, bailout, Swiss National Bank, liquidity base, UBS, Silicon Valley Bank, global banking system
Credit Suisse Plummets 30% After Largest Shareholder Pulls Support