Credit Suisse shares plummet as Saudi supporter refuses additional aid

Photo: Bloomberg (Fair Use)

For the second day in a row, Credit Suisse’s stocks hit an all-time low as a key investor announced that regulatory limitations prevented them from offering further financial assistance to the struggling Swiss bank.

The bank’s plummeting stock experienced several halts in trading during the morning, as it dropped below 2 Swiss francs ($2.17) for the first time, CNBC reported.

At approximately 3 p.m. London time (11 a.m. ET), shares of Credit Suisse listed on the Swiss exchange were down 17%, having reduced some of their earlier losses. Previously, the shares had dropped over 30% at one stage.

The sharp decline in share prices triggered a renewed wave of selling among European lenders who were already grappling with significant market turbulence due to the Silicon Valley Bank crisis.

Among the largest decliners were Societe Generale of France, Banco de Sabadell of Spain, and Commerzbank of Germany, as reported by CNBC.

According to a Reuters report, Saudi National Bank, which is the biggest investor in Credit Suisse, stated that it could not extend any additional financial aid to the Swiss bank, causing the latest drop in its stock price.

Written by staff