Credit Suisse sheds nearly 25%, key backer says no more money
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[March 15, 2023] By
Noele Illien
ZURICH (Reuters) - Credit Suisse lost almost a quarter of its value on
Wednesday, dropping to a new record low after its largest investor said
it could not provide the Swiss bank with more financial assistance.
"We cannot, because we would go above 10%. It’s a regulatory issue,"
Saudi National Bank chairman Ammar Al Khudairy said on Wednesday.
The Saudi lender acquired a stake of almost 10% last year after taking
part in Credit Suisse's capital raising and committed to investing up to
1.5 billion Swiss francs ($1.5 billion).
Broader equity markets fell sharply, reversing earlier gains, as Credit
Suisse's drop by as much as 24% re-ignited some of the jitters among
investors about the resilience of the global banking system after the
collapse of Silicon Valley Bank.
Speaking at a Morgan Stanley conference on Wednesday, Ralph Hamers,
chief executive of Swiss rival UBS said the lender has benefited from
recent market turmoil and seen money inflows.
![](http://archives.lincolndailynews.com/2023/Mar/15/images/ads/current/humanesociety_sda022411.png)
"In the last couple of days as you might expect we've seen inflows,"
Hamers said. "It is clearly a flight to safety from that perspective,
but I think three days don't make a trend."
Credit Suisse on Tuesday published its annual report for 2022 saying the
bank had identified "material weaknesses" in controls over financial
reporting and not yet stemmed customer outflows.
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![](../images/031523PIX/busine50.jpg)
The logo of Swiss bank Credit Suisse is
seen at its headquarters in Zurich, Switzerland March 24, 2021.
REUTERS/Arnd Wiegmann/File Photo
![](http://archives.lincolndailynews.com/2023/Mar/15/images/031323PIX/graue_lda_preowned_031323.jpg)
Switzerland's second-biggest bank is seeking to recover from a
string of scandals that have undermined the confidence of investors
and clients. Customer outflows in the fourth quarter rose to more
than 110 billion Swiss francs ($120 billion).
The shares fell below the 2-Swiss franc mark for the first time in
Zurich as they headed for a seventh straight daily decline.
The cost of insuring the company's bonds against default shot up.
Five-year credit default swaps on Credit Suisse debt widened to 574
basis points from 549 bps at last close, according to data from S&P
Global Market Intelligence, marking a new record high.
Earlier this week, Credit Suisse CEO Ulrich Koerner told a
conference that the bank's liquidity coverage ratio averaged 150% in
the first quarter of this year - well above regulatory requirements.
($1 = 0.9173 Swiss francs)
(Reporting by Noele Illien; Editing by Amanda Cooper, Elisa
Martinuzzi and Tomasz Janowski)
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