Shares of Credit Suisse are currently down 14% on the Zurich Stock Exchange after falling 30% on a day marked by the refusal of the National Bank of Saudi Arabia, its major shareholder, to provide it with additional bailouts, eroding investor confidence.
Shares of the Bank of Zurich, one of the 20 largest in Europe and one of the 50 largest in the world, are around 1.9 Swiss francs (1.95 euros) after hitting a record low of 1.5 francs during the session (1.54 euros) . when they were never below 2 francs per ballot.
The collapse, which comes after a few very negative days for the bank, triggered by a stock market crisis caused by the collapse of the US SVB, coincides with statements by the president of the Saudi state-owned bank, Ammar al-Khudairi, that he will not allow further capital injections from the enterprise.
“We can’t because we will exceed 10% (of the shareholding), this is a matter of regulation,” he said in statements to Bloomberg.
The Saudi bank acquired the 10% stake last year as part of a capital increase launched by Credit Suisse, an investment in which the Middle East company invested 1,500 million Swiss francs (1,530 million euros).
In 2022, the Zurich-based bank reported losses of CHF 7,293 million (about EUR 7,400 million) in 2022, 4.5 times more than in 2021.
Due to its exposure to risky firms with financial problems, such as Archegos or Greensill, Credit Suisse also suffered a liquidity drain of 123,200 million Swiss francs (126,000 million euros) last year.
EFE
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
