Credit Suisse shares fall, European banking stocks down sharply
Credit Suisse shares were in free fall on the Swiss stock market on Wednesday March 15 after its largest Saudi shareholder said it would not ” absolutely not “ support the bank by raising more capital.
“We currently own 9.8% of the bank. If we exceed 10%, a series of new rules come into effect” And “we are not inclined to enter into a new regulatory regime”Saudi National Bank chairman Ammar Al-Khudairy told Bloomberg TV on Wednesday morning.
Around 11:40 a.m., the title of the second largest bank in Switzerland dropped 19.7% to 1.7985 Swiss francs after hitting a historic low of 1.7275 CHF during the session.
Led by Credit Suisse, banking stocks in Europe fell sharply on Wednesday – BNP Paribas, Societe Generale and Commerzbank lost more than 10% – while the euro and other major European currencies took a nose dive.
The risk created for the banking sector, on the eve of a meeting of the European Central Bank (ECB), caused the euro to lose 1.02% to 1.0624 dollars, while the Swiss franc lost 0.75% at 0.9215 Swiss francs to the dollar.
Credit Suisse’s reputation has been tarnished by a series of scandals in recent years. The Saudi National Bank had come to its rescue by participating in a capital increase of 4 billion Swiss francs in November as part of a major restructuring.