Stocks hit a record low, the market is full of news that Credit Suisse is about to default?


Credit Suisse is the second largest bank in Switzerland. The bank has struggled over the past few years, in the face of a series of scandals, senior staff changes and legal issues.

Credit Suisse shares lost nearly a quarter of their value on March 15, falling to a new record low after its biggest investor said it could not provide more support, according to Reuters news agency. financial support for Swiss banks.

Trading activities of this stock were suspended several times in a row in the morning of March 15 (London time). Shares have recovered slightly, but are still down more than 20% for the session.

A few Italian bank stocks were also suspended from automatic trading after plummeting, including UniCredit, Finecobank and Monte Dei Paschi.

Credit Suisse's biggest investor, Saudi Arabia's National Bank (SNB), said it could no longer provide financial support to the Swiss bank, sources told Reuters. It was this news that engulfed Credit Suisse shares and raised concerns about the banking group.

"We can't because ownership will exceed 10%. It's a legal matter," SNB Chairman Ammar Al Khudairy told Reuters on March 15. However, he added that the SNB is satisfied with Credit Suisse's reform plan and thinks the bank probably doesn't need more capital.

National Bank of Saudi Arabia bought a 9.9 percent stake in Credit Suisse last year as part of the Swiss bank's capital raise to fund a major strategic overhaul aimed at improving operational efficiency. investment banking and address a wide range of risks and errors.

The broader stock markets fell sharply, reversing earlier gains, as Credit Suisse shares fell as much as 24% rekindled worries among some investors about the resilience of the banking system. globally after the collapse of SVB.

Meanwhile, Axel Lehmann, Chairman of Credit Suisse, declined to comment on whether the company will need government support in the future.

Investors were also wary when Credit Suisse said it had identified "significant weaknesses" in its 2021-2022 report and was taking steps to fix it.

Credit Suisse is Switzerland's second-largest bank, having been in business since 1856. The bank has struggled over the past few years, facing a series of scandals, senior staff changes and other financial problems. legal issue.

A loss of 7.3 billion francs last year wiped out the profits of the previous decade.

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