https://www.cnbc.com/2023/03/15/cre...audi-backer-rules-out-further-assistance.html
Credit Suisse shares tank over 30% after Saudi backer rules out further assistance
PUBLISHED WED, MAR 15 20236:29 AM EDTUPDATED 10 MIN AGO
Elliot Smith@ELLIOTSMITHCNBC
Hannah Ward-Glenton@HANNAHSWG
Sam Meredith@SMEREDITH19
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KEY POINTS
Commuters cycle past a Credit Suisse Group AG bank branch in Basel, Switzerland, on Tuesday, Oct. 25, 2022. Credit Suisse will present its third quarter earnings and strategy review on Oct. 27.
Stefan Wermuth | Bloomberg | Getty Images
Shares of Credit Suisse on Wednesday plunged to a fresh all-time low for the second consecutive day after a top investor of the embattled Swiss bank said it would not be able to provide any more cash due to regulatory restrictions.
Trading in the bank’s plummeting shares was halted several times throughout the morning as it fell below 2 Swiss francs ($2.17) for the first time.
RELATED INVESTING NEWS
Sellers are targeting this bank because of its deposit mix, but Citi says it’s a buy
Deutsche Bank says Charles Schwab liquidity risks are overblown, sticks with buy rating
The stock recovered slightly by around midday London time, before extending losses in early afternoon deals. Credit Suisse was last seen trading over 30% lower for the session.
The share price rout renewed a broader sell-off among European lenders, which were already facing significant market turmoil as a result of the Silicon Valley Bank fallout. Several Italian banks on Wednesday were also subject to automatic trading stoppages, including UniCredit, FinecoBank and Monte dei Paschi.
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 Wednesday. However, he added that the SNB is happy with Credit Suisse’s transformation plan and suggested the bank was unlikely to need extra money.
The Saudi National Bank took a 9.9% stake in Credit Suisse last year as part of the Swiss bank’s $4.2 billion capital raise to fund a massive strategic overhaul aimed at improving investment banking performance and addressing a litany of risk and compliance failures.
Credit Suisse CEO Ulrich Koerner on Wednesday sought to defend the bank’s liquidity basis, saying it is “very, very strong,” Reuters reported, citing an interview with CAN.
Koerner added, “We fulfill and overshoot basically all regulatory requirements.”
Meanwhile, speaking to CNBC’s Hadley Gamble during a panel session in Riyadh on Wednesday morning, Credit Suisse Chairman Axel Lehmann declined to comment on whether his firm would need any sort of government assistance in the future.
SVB’s collapse a ‘warning signal’ to banking system: Credit Suisse chairman
When asked if he would rule out some kind of assistance, Lehmann answered, “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.”
“material weaknesses” in its financial reporting processes for 2022 and 2021.
The Swiss lender disclosed the observation in its annual report, which was initially scheduled for last Thursday but was delayed by a late call from the U.S. Securities and Exchange Commission.
The SEC conversation related to a “technical assessment of previously disclosed revisions to the consolidated cash flow statements in the years ended December 31, 2020, and 2019, as well as related controls.”
In late 2022 the bank disclosed that it was seeing “significantly higher withdrawals of cash deposits, non-renewal of maturing time deposits and net asset outflows at levels that substantially exceeded the rates incurred in the third quarter of 2022.”
Credit Suisse saw customer withdrawals of more than 110 billion Swiss francs in the fourth quarter, as a string of scandals, legacy risk and compliance failures continued to plague it.
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This concerns a lot as they cannot get quietly a lot of money there. So what will happen next with CS then ?
https://www.cnbc.com/2023/03/15/cre...licon-valley-bank-crisis-looks-contained.html
Who knows more here ? Any major worldwide banking crisis is a matter of a few days/weeks from now because of Credit Suisse ? Will SNB rescue all us or what can or will likely happen ?
Credit Suisse shares tank over 30% after Saudi backer rules out further assistance
PUBLISHED WED, MAR 15 20236:29 AM EDTUPDATED 10 MIN AGO
Elliot Smith@ELLIOTSMITHCNBC
Hannah Ward-Glenton@HANNAHSWG
Sam Meredith@SMEREDITH19
SHARE
KEY POINTS
- Shares of embattled bank Credit Suisse hit another all-time low for a second consecutive day.
- Credit Suisse’s biggest backer, Saudi National Bank, has said it won’t provide further financial help for the bank.
- Speaking to CNBC’s Hadley Gamble during a panel session in Riyadh on Wednesday morning, Credit Suisse Chairman Axel Lehmann declined to comment on whether his firm would need any sort of government assistance in the future.
Commuters cycle past a Credit Suisse Group AG bank branch in Basel, Switzerland, on Tuesday, Oct. 25, 2022. Credit Suisse will present its third quarter earnings and strategy review on Oct. 27.
Stefan Wermuth | Bloomberg | Getty Images
Shares of Credit Suisse on Wednesday plunged to a fresh all-time low for the second consecutive day after a top investor of the embattled Swiss bank said it would not be able to provide any more cash due to regulatory restrictions.
Trading in the bank’s plummeting shares was halted several times throughout the morning as it fell below 2 Swiss francs ($2.17) for the first time.
RELATED INVESTING NEWS
Sellers are targeting this bank because of its deposit mix, but Citi says it’s a buy
Deutsche Bank says Charles Schwab liquidity risks are overblown, sticks with buy rating
The stock recovered slightly by around midday London time, before extending losses in early afternoon deals. Credit Suisse was last seen trading over 30% lower for the session.
The share price rout renewed a broader sell-off among European lenders, which were already facing significant market turmoil as a result of the Silicon Valley Bank fallout. Several Italian banks on Wednesday were also subject to automatic trading stoppages, including UniCredit, FinecoBank and Monte dei Paschi.
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 Wednesday. However, he added that the SNB is happy with Credit Suisse’s transformation plan and suggested the bank was unlikely to need extra money.
The Saudi National Bank took a 9.9% stake in Credit Suisse last year as part of the Swiss bank’s $4.2 billion capital raise to fund a massive strategic overhaul aimed at improving investment banking performance and addressing a litany of risk and compliance failures.
Credit Suisse CEO Ulrich Koerner on Wednesday sought to defend the bank’s liquidity basis, saying it is “very, very strong,” Reuters reported, citing an interview with CAN.
Koerner added, “We fulfill and overshoot basically all regulatory requirements.”
Meanwhile, speaking to CNBC’s Hadley Gamble during a panel session in Riyadh on Wednesday morning, Credit Suisse Chairman Axel Lehmann declined to comment on whether his firm would need any sort of government assistance in the future.
SVB’s collapse a ‘warning signal’ to banking system: Credit Suisse chairman
When asked if he would rule out some kind of assistance, Lehmann answered, “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.”
“material weaknesses” in its financial reporting processes for 2022 and 2021.
The Swiss lender disclosed the observation in its annual report, which was initially scheduled for last Thursday but was delayed by a late call from the U.S. Securities and Exchange Commission.
The SEC conversation related to a “technical assessment of previously disclosed revisions to the consolidated cash flow statements in the years ended December 31, 2020, and 2019, as well as related controls.”
In late 2022 the bank disclosed that it was seeing “significantly higher withdrawals of cash deposits, non-renewal of maturing time deposits and net asset outflows at levels that substantially exceeded the rates incurred in the third quarter of 2022.”
Credit Suisse saw customer withdrawals of more than 110 billion Swiss francs in the fourth quarter, as a string of scandals, legacy risk and compliance failures continued to plague it.
---------
This concerns a lot as they cannot get quietly a lot of money there. So what will happen next with CS then ?
https://www.cnbc.com/2023/03/15/cre...licon-valley-bank-crisis-looks-contained.html
Who knows more here ? Any major worldwide banking crisis is a matter of a few days/weeks from now because of Credit Suisse ? Will SNB rescue all us or what can or will likely happen ?
