{"id":186785,"date":"2023-03-15T11:30:00","date_gmt":"2023-03-15T15:30:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=186785"},"modified":"2023-03-15T11:28:35","modified_gmt":"2023-03-15T15:28:35","slug":"credit-suisse-down-28-as-its-biggest-backer-refuses-additional-help","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/stocks\/credit-suisse-down-28-as-its-biggest-backer-refuses-additional-help\/","title":{"rendered":"Credit Suisse Down 28% as its Biggest Backer Refuses Additional Help"},"content":{"rendered":"\n<p>Credit Suisse shares plummet to a new all-time low after key backer rules out further financial aid.<\/p>\n\n\n\n<p>Shares of Credit Suisse on the New York Stock Exchange (NYSE) fell over 28% at a fresh all-time low of $1.79 after&nbsp;<a href=\"https:\/\/www.cnbc.com\/2023\/03\/15\/credit-suisse-shares-slide-after-saudi-backer-rules-out-further-assistance.html\" target=\"_blank\" rel=\"noreferrer noopener\">Saudi National Bank (SNB) said<\/a>&nbsp;it would stop providing further financial assistance to the Swiss lender due to regulatory issues. The bank\u2019s shares on the SIX Swiss Exchange were also down more than 26% at 1.64 CHF.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-credit-suisse-stock-hits-a-new-record-low-for-second-consecutive-day\">Credit Suisse Stock Hits a New Record Low for Second Consecutive Day<\/h2>\n\n\n\n<p>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\u2019s stock stood at $1.79 ahead of the market open.<\/p>\n\n\n\n<p>The drop comes after SNB, Credit Suisse\u2019s biggest investor, said it is cutting further financial assistance to the Swiss bank, Reuters reported. SNB said the move comes due to regulatory challenges.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWe cannot because we would go above 10%. It\u2019s a regulatory issue.\u201d\u2013 said Saudi National Bank Chairman Ammar Al Khudairy.<\/p>\n<\/blockquote>\n\n\n\n<p>On the other hand, Al Khudairy said SNB is content with&nbsp;<a href=\"https:\/\/www.credit-suisse.com\/media\/assets\/corporate\/docs\/about-us\/media\/media-release\/2022\/10\/strategy-update-press-release-en.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Credit Suisse\u2019s current transformation program<\/a>, 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\u2019s $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.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Credit Suisse Declares \u201cMaterial Weaknesses\u201d in its Annual Report<\/h2>\n\n\n\n<p>It seems there is no end to Credit Suisse\u2019s woes. Just a day before SNB\u2019s exit, the bank said it&nbsp;<a href=\"https:\/\/www.cnbc.com\/2023\/03\/14\/credit-suisse-finds-material-weaknesses-in-financial-reporting-says-outflows-not-yet-reversed.html\" target=\"_blank\" rel=\"noreferrer noopener\">had discovered<\/a>&nbsp;\u201cmaterial weaknesses\u201d 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).<\/p>\n\n\n\n<p>In the report, the bank said weaknesses were related to \u201cfailure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements,\u201d as well as several internal control and communication flaws.<\/p>\n\n\n\n<p>Over the past year, Credit Suisse\u2019s stock nosedived more than 76% following several scandals, including&nbsp;<a href=\"https:\/\/tokenist.com\/credit-suisse-estimates-1-6b-loss-after-88-3b-withdrawn-in-bank-run\/\">substantial losses<\/a>,&nbsp;<a href=\"https:\/\/tokenist.com\/credit-suisse-stock-up-6-as-another-key-dealmaker-departs\/\">key dealmaker departures<\/a>, and massive withdrawals. The stock price decline has picked up pace as investors jumped ship amid a banking crisis triggered by the&nbsp;<a href=\"https:\/\/tokenist.com\/signature-bank-shut-down-by-us-regulators-over-systematic-risk-fears\/\">collapse of the Silicon Valley Bank<\/a>&nbsp;(SVB).<\/p>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally Posted March 15, 2023 &#8211; <a href=\"https:\/\/tokenist.com\/credit-suisse-down-28-as-its-biggest-backer-refuses-additional-help\/\">Credit Suisse Down 28% as its Biggest Backer Refuses Additional Help<\/a><\/p>\n\n\n\n<p><strong>Disclosure:<\/strong>&nbsp;Tim Fries has no positions in any of the stocks mentioned, and has no plans to initiate any positions within the 72 hours following the publishing of this article. This article expresses the opinions of Tim Fries. Tokenist Media LLC has no position in any of the stocks mentioned, and does not plan to initiate any positions within 72 hours of the publishing of this article. Please consult our&nbsp;website policy&nbsp;for more information.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Credit Suisse shares plummet to a new all-time low after key backer rules out further financial aid.<\/p>\n","protected":false},"author":501,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5,6,8,9,22,26,3],"tags":[14920,3216,6986,4432,1541],"contributors-categories":[13710],"class_list":{"0":"post-186785","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-europe-middle-east-africa","7":"category-north-america","8":"category-region","9":"category-securities","10":"category-stocks","11":"category-text-articles","12":"category-traders-insight","13":"tag-bank-sector","14":"tag-bank-stocks","15":"tag-banking","16":"tag-credit-suisse","17":"tag-financial-stability","18":"contributors-categories-the-tokenist"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.4) - 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