Breaking News
Investing Pro 0
🚨 NDVA surged 43%. This AI Chipmaker Could Be Next See Analysis

Credit Suisse Shares Plummet to Record Low as Partner Cuts Financial Support

By The Tokenist (Timothy Fries )Stock MarketsMar 15, 2023 15:49
ng.investing.com/analysis/credit-suisse-shares-plummet-to-record-low-as-partner-cuts-financial-support-158472
Credit Suisse Shares Plummet to Record Low as Partner Cuts Financial Support
By The Tokenist (Timothy Fries )   |  Mar 15, 2023 15:49
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
CSGN
0.10%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CS
0.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Shares of Credit Suisse (NYSE:CS) on the New York Stock Exchange (NYSE) fell over 28% at a fresh all-time low of $1.78 after Saudi National Bank (SNB) said it would stop providing further financial assistance to the Swiss lender due to regulatory issues. CS's (SIX:CSGN) shares on the Swiss Exchange were also down more than 26% at CHF 1.64.

Credit Suisse Stock Hits a New Record Low for Second Consecutive Day

Credit Suisse shares tumbled to a new record low for the second consecutive day, dropping more than 28% in premarket trading Wednesday. After several trading halts this morning, the bank’s stock stood at $1.78 ahead of the market open.

The drop comes after SNB, Credit Suisse’s biggest investor, said it is cutting further financial assistance to the Swiss bank, Reuters reported. SNB said the move comes due to regulatory challenges.

Saudi National Bank Chairman Ammar Al Khudairy said:

"We cannot because we would go above 10%. It’s a regulatory issue."

On the other hand, Al Khudairy said SNB is content with Credit Suisse's current transformation program, indicating that the embattled bank was unlikely to need further financial aid. SNB, the largest commercial bank in Saudi Arabia, acquired a 9.9% stake in Credit Suisse in 2022 amid the Swiss bank's $4.2 billion capital raise. The transaction aimed to fuel a massive strategic overhaul to prop up its investment banking business and address risk and compliance failures.

Credit Suisse Declares Material Weaknesses in its Annual Report

It seems there is no end to Credit Suisse's woes. Just a day before SNB’s exit, the bank said it had discovered "material weaknesses" in its financial reporting processes for 2022 and 2021. The Swiss lender disclosed the flaws in its annual report, which was due to come out on Thursday but was delayed following a late call from the U.S. Securities and Exchange Commission (SEC).

In the report, the bank said weaknesses were related to "failure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements," as well as several internal control and communication flaws.

Over the past year, Credit Suisse's stock nosedived more than 76% following several scandals, including substantial losses, key dealmaker departures, and massive withdrawals. The stock price decline has picked up pace as investors jumped ship amid a banking crisis triggered by the collapse of the Silicon Valley Bank (SVB).

***

Disclaimer: Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions. This article was originally published on The Tokenist. Check out The Tokenist’s free newsletter, Five Minute Finance, for weekly analysis of the biggest trends in finance and technology.

Credit Suisse Shares Plummet to Record Low as Partner Cuts Financial Support
 

Related Articles

Credit Suisse Shares Plummet to Record Low as Partner Cuts Financial Support

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email