More bank problems? Credit Suisse crashes by 30 % because the greatest shareholder withdraws his support
More bank problems? Credit Suisse crashes by 30 % because the greatest shareholder withdraws his support
The Credit Suisse shares on Wednesday fell to another low of only CHF 1.65 (1.79 $) after her biggest shareholder-Saudi National Bank (SNB)-had not been able to buy any further shares of the company.
The decline of 30 % was associated with the widespread fear that the Credit Suisse could be on the shortage of payment.
still a bank run?
The Saudi National Bank can no longer invest in the battered bank due to regulatory restrictions, SNB chairman Ammar Al Khudairy told Reuters on Wednesday. It currently holds a 9.88 % share in the company, only 12 basis points below the 10 % limit.
The message only contributes to the widespread fears of the industry that the bank shares pressed down this week after the collapse of the Silicon Valley Bank (SVB) this week. According to American bank stocks suffered On Monday, several European banks were faced with declines on Wednesday, including the French Societe Generale (-11%) and the German Commerzbank (-8.5 %).
Since last year the Credit Suisse has been shaken by compliance with legal regulations error and scandals, strategically overhaul , weak profit publications and macroeconomic pressure. In October, the five-year-old credit default swaps from bank trade to 10-year highs meant that investors were looking for protection against a possible default.
wtf? The markets are now praising a default probability of 47% for Credit Suisse. What did I miss? pic.twitter.com/q2mmo0t3lv
- Holger Zschaepitz (@Schuldensuehner) 15. March 2023
The stock of the bank had already fallen on new lows on Tuesday when the Credit Suisse had published its published annual report which only one month after the publication "essential weaknesses" in its finance Opening controls identified worst annual loss since the financial crisis 2008.
Nevertheless, Al Khudairy from SNB told Reuters that he was satisfied with the Turnaround plan of the Credit Suisse.
"I don't think they will need additional money; if you look at their circumstances, they are okay," he said. "And they operate under a strict regulatory system in Switzerland and in other countries."
in a (n interview with can said Ulrich Körner, CEO the credit suisse, on Wednesday that the bank has a" very, very strong "capital and liquidity. CEO of the SVB made similar claims last week and asked the customers to "stay calm" in front of the bank.
When the discussions about a possible failure of the Credit Suisse began last year, analysts gave compared The idea for a repeat of the consequences of Lehman Brothers from 2008. Greg Foss-Bitcoin enthusiast and high-yield credit dealer, risk manager and analyst- called Is "system -relevant financial institution" and is currently in the middle of a collapse. "There is a run on the bench," he said in an interview on Tuesday. "The asset department loses assets in a great way ... I do not say that they are insolvent, but I saw enough banks in the situation that are insolvent."
When the SVB collapsed last week due to a banking tower, the Federal Reserve intervened until Sunday to save all the bank inserters in order to contain the market. On Wednesday, the Financial Times reported that the Credit Suisse was there attractive to the Swiss Central Bank for the loud support in favor of its financial situation. Custodia Bank-CEO Caitlin Long that Credit Suisse "Switzerland floods in its size" and that the bank becomes "a problem of the Fed" when it breaks down.
1/sad to see what happens in my old shop @credit suisse . It almost went under in 2001 when John Mack got me out of the insurance stock analysis to help him restructure in Zurich. Another example of what goes wrong when the balance is hollowed out☹️ https://t.co/vke1h0gqtd - Caitlin Long 🔑⚡️🟠 (@caitlinlong_) 14. March 2023 . The size of the credit suisse