Credit Suisse Teeters as Shares Slide 30 Percent
Shares in Credit Suisse, one of the world’s largest investment banks, tumbled by 30 percent Wednesday morning, reigniting fears triggered last week by the failure of Silicon Valley Bank that the global financial system could be on the verge of a broader meltdown. The nosedive sent shockwaves through European markets, with other major banks on the continent seeing their share prices get hammered. The collapse in Credit Suisse shares came after the chairman of the Saudi National Bank, which has a 10 percent stake in Credit Suisse, ruled out providing the bank with any further financial assistance. Some analysts say that the latest banking crisis has been triggered by rising interest rates.
Had you asked me before reading this article for a guess of $CS current stock price, like Chef’s parents on South Park, I would have said "Tree-fiddy ($3.50), but I see we’re already at $1.97
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Quite a few regional banks tanked today due to fears of bad news in spite of guarantees from the feds.
Are these falling knives worth buying? What do you think? KBE is the small bank ETF. First Republic is often mentioned.
KBE is down 17% in the last five days. FRC is down almost 70%.
$CS has had problems for a while, but for the Central Bank of Switzerland to dump $54 Billion into this Dumpster Fire is a sign of severe stress.
Credit Suisse to borrow up to nearly $54 billion from Swiss National Bank
Credit Suisse announced it will be borrowing up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank under a covered loan facility and a short-term liquidity facility.
The decision comes shortly after shares of the lender fell sharply Wednesday, hitting an all-time low for a second consecutive day after its top investor Saudi National Bank was quoted as saying it won’t be able to provide further assistance.
The latest steps will “support Credit Suisse’s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs,” the company said in an announcement.
I
There must be a shite-ton of collateral risks going on at $CS, which is down about 16% in the pre-markets.
. . . and Bloomberg Suveillance TV just said it’s down 20%. Woo. That’s quick.
