European banking stocks were down 7% overall.
Credit Suisse shares closed down 24% at the end of the trading day in Europe.
Overall European bank stocks were down 7%.
The decline represents ongoing fallout from the Silicon Valley Bank collapse.
As noted by CNBC, the significant fall in the Credit Suisse share price followed their top investor – Saudi National Bank – saying they wouldn’t provide more funds:
“Credit Suisse’s largest investor, Saudi National Bank, said it could not provide the Swiss bank with any further financial assistance, according to a Reuters report, sparking the latest leg lower.
“We cannot because we would go above 10%. It’s a regulatory issue,” Saudi National Bank Chairman Ammar Al Khudairy told Reuters on Wednesday. However, he added that SNB is happy with Credit Suisse’s transformation plan and suggested the bank was unlikely to need extra money.”
Credit Suisse Chairman Axel Lehmann defended the bank’s position, while avoiding a direct answer on whether Credit Suisse would require state intervention:
“That’s not the topic. We are regulated, we have strong capital ratios, very strong balance sheet. We are all hands on deck. So that’s not the topic whatsoever.”
Both the Dow and TSX are down amid broader concerns surrounding the banking sector.
Spencer Fernando
Photo – YouTube
