Shares of Swiss bank Credit Suisse fell 20% after a Saudi investor refused to take a stake.
European bank shares fell after the value of Swiss bank Credit Suisse fell to a new record low. On Wednesday, March 15, according to Reuters.
Credit Suisse shares fell below 2 Swiss francs for the first time, as the lender’s largest shareholder, the National Bank of Saudi Arabia, said it could not provide it with further bailouts.
“We cannot because otherwise we would have to exceed the stake in the bank above the current 10%. This is a matter of regulation,” said Saudi National Bank Chairman Ammar Al Hudayri.
It was noted that the shares of the Swiss bank fell by more than 22%. Trading of the shares has been halted several times by the stock exchange operator.
“We are moving from the problems of American banks to the problems of European banks, especially Credit Suisse,” said Carlo Franchini, head of institutional clients at Banca Ifigest in Milan.
According to him, it is dragging down the entire banking sector in Europe. At the same time, Franchini expressed confidence that the Credit Suisse crisis will be resolved and the bank will not be allowed to go bankrupt.
Because of the problems at Credit Suisse, the shares of Europe’s largest banks fell sharply.
An index of European bank stocks fell 5%, hitting its lowest level since January 4. Shares of Swiss bank UBS fell 6.8%. Shares of French banks BNP Paribas and Societe Generale fell 8.7% and 9.5%, respectively. The Spanish bank Banco de Sabadell and the German Commerzbank fell in price by 6.5-7.5%.
Recall that on March 10, the US financial regulator closed the California Silicon Valley Bank. His bankruptcy was the largest since the financial crisis of 2008. Following SVB, the American authorities shut down New York Signature Bank.
Global financial stocks lost $465 billion due to SVB’s bankruptcy.
US President Joe Biden addressed the nation and said that “Americans can rest assured that the banking system is safe.”
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Source: korrespondent
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