Credit Suisse shares sink

Jamey Keaten  (Geneva):  Battered shares of Credit Suisse lost more than one-quarter of their value on Wednesday, hitting a record low after its biggest shareholder — the Saudi National Bank — told outlets that it would not inject more money into the ailing Swiss bank. The turmoil in the Credit Suisse stock price prompted an automatic pause in trading of the bank's shares on Switzerland's market and brought down shares of other European banks by as much as double digits. That fanned new fears about the health of financial institutions in the wake of the collapse of Silicon Valley Bank in the United States and worries about midsized lenders. Credit Suisse stock was down more than 27 per cent at around 1.6 Swiss francs in mid-afternoon trading on the SIX stock exchange on Wednesday. That's down more than 85 per cent from February 2021. The Swiss exchange says the drop in Credit Suisse shares triggered a temporary, automatic pause.

Other European banks were taking a battering amid concerns about the sector: France's Societe Generale SA dropped 12 per cent, France's BNP Paribas fell more than 10 per cent, Germany's Deutsche Bank was down 8per cent and Britain's Barclays Bank was down nearly 8per cent. Shares in the two French banks were briefly suspended. The tumble came after Ammar Al Khudairy, the chairman of key Credit Suisse shareholder Saudi National Bank, told Bloomberg and Reuters that it has ruled out further investments in the Swiss bank to avoid regulations that kick in when it has a stake above 10 per cent.