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Credit Suisse Seeks Help From Real SNB (Swiss National Bank) After Saudi National Bank Rules Out Additional Assistance

Credit Suisse Group Inc (NYSE: CS) has requested the Swiss National Bank to show support towards the battered bank after losing almost 30% of its stock value, sparking a broader sell-off in European and U.S. bank stocks.

Credit Suisse also asked for a similar response from Finma, the Swiss regulator.

Saudi National Bank stated that it would not buy additional shares in Credit Suisse, citing that regulatory guidelines do not allow it to invest over 10% of an entity.

Also Read: Rich Dad, Poor Dad Author Has Chilling Bank Prediction: 'I Called Lehman Brothers Years Ago And I Think The Next Bank To Go Is...'

Saudi National Bank is already one of the top shareholders, with a 9.9% stake in the beleaguered Swiss bank. According to Credit Suisse's website, BlackRock Inc (NYSE: BLK) has 4.1% ownership in the bank.

"It is looking inevitable that the Swiss National Bank will have to intervene and provide a lifeline," said Octavio Marenzi, Financial Times reported citing an analyst at Opimas. "The [Swiss National Bank] and the Swiss government are fully aware that the failure of Credit Suisse or even any losses by deposit holders would destroy Switzerland's reputation as a financial center."

Separately, the European Central Bank has asked EU lenders to disclose their exposures to the Swiss lender, a person familiar with the matter told the Financial Times.

BNP Paribas (OTC: BNPQY)(OTC: BNPQF) (OTC: BNPZY)shares dropped 9%, and Société Générale SA (OTC: SCGLF) (OTC: SCGLY) fell 11%. Deutsche Bank AG (NYSE: DB) and Barclays Plc (NYSE: BCS) lost 7%, while ING Group NV (NYSE: ING) fell 10%.

Wider equity markets were dragged lower, with the Europe-wide Stoxx 600 dropping 2.4% and the S&P 500 down 1.8% in early trade led by banks.

Tuesday, Credit Suisse released its delayed FY22 annual report identifying "material weaknesses" in its internal controls over financial reporting.

Price Action: CS shares are down 24.3% at $1.91 on the last check Wednesday.

Photo Via Wikimedia Commons

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This article Credit Suisse Seeks Help From Real SNB (Swiss National Bank) After Saudi National Bank Rules Out Additional Assistance originally appeared on Benzinga.com


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