Credit Suisse’s Stock Plummets More Than 30% After Saudi National Bank Rules Out Further Help

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Last Updated on March 15, 2023 by Bitfinsider

Credit Suisse shares fell to a new all-time low on Wednesday for the second day in a row after a key investor in the troubled Swiss bank said it would be unable to provide any more capital due to regulatory constraints.

Trading in the bank’s falling shares was stopped several times during the morning as it dropped below 2 Swiss francs ($2.17) for the first time.

By midday London time, the company had rebounded marginally before extending losses in early afternoon trades. Credit Suisse was last seen selling more than 30% weaker for the day.

The drop in share prices rekindled a broader sell-off among European lenders, who were already experiencing significant market turmoil as a result of the Silicon Valley Bank debacle. On Wednesday, several Italian institutions, including UniCredit, Finecobank, and Monte Dei Paschi, experienced automated trading halts.

According to Reuters, Credit Suisse’s biggest investor, Saudi National Bank, said it could not provide any further financial help to the Swiss bank, prompting the newest leg lower.

“We can’t because we’d go over 10%. “It’s a regulation problem,” said Saudi National Bank Chairman Ammar Al Khudairy on Wednesday. However, he added that the SNB is pleased with Credit Suisse’s restructuring strategy and believes the bank will not require additional funds.

Last year, the Saudi National Bank purchased a 9.9% share in Credit Suisse as part of a $4.2 billion capital increase to finance a major strategy makeover targeted at boosting investment banking performance and tackling a series of risk and compliance failings.

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