Credit Suisse asks for support from the Swiss National Bank after shares fall by 30%
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Today, March 15, the Swiss bank Credit Suisse has asked for support from the Swiss National Bank (SNB) in the face of a sharp drop in share prices. This is reported Financial Times with reference to sources. Credit Suisse, which reported reporting problems yesterday, March 14, is asking the SNB to issue a reassuring statement to the industry that the bank is in reasonable health. With the same request, the bank turned to the Swiss Financial Market Supervisory Authority (FINMA). Neither SNB nor FINMA have yet made any statement about the Credit Suisse situation.
Shares of Credit Suisse today, March 15, fell by 30%, to an all-time low – for the first time they traded at a price below 2 Swiss francs ($ 2.2). This is due to the increasingly serious problems of the bank. Later, the stock price recovered somewhat, but nevertheless remained 17% below the closing price of trading on Tuesday, March 14th. The European banking index fell today, March 15, by 7%.
Yesterday, March 14, Credit Suisse informedthat it found “material deficiencies” in its financial statements. The bank said “the group’s internal control over financial reporting was not effective” in 2021 and 2022. After that, many experts started talking about the fact that Credit Suisse could have very serious problems: for example, the famous American investor Robert Kiyosaki saidthat awaits its bankruptcy. Of particular concern to investors is that this is happening against the backdrop of the collapse of US banks. Silicon Valley Bank And Signature Bank. Recently, Credit Suisse has been regularly at the center of scandals, and last year it finished with a record loss of $7.9 billion.
Today’s fall in stocks provoked made in an interview with Reuters statement Chairman of the Board of the Saudi Saudi National Bank Omar al-Khudayvi that the bank will not invest additional funds in Credit Suisse. Mr. al-Khudayvi explained this by the fact that, according to regulatory standards, his bank cannot increase its share above 10%. Currently, the Saudi bank is the largest shareholder of Credit Suisse, controlling 9.9% of the shares.
According to Reuters citing sources, the European Central Bank has already contacted major European banks to find out how the situation with Credit Suisse will affect them and whether there are risks for them in this regard. At the same time, one of the sources in this area noted that the situation is more related to the specific risks of Credit Suisse than to the entire industry as a whole.
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