March 15, 2023 (MLN): Shares of Credit Suisse, the embattled Swiss bank, have dropped by as much as 18.3% around 10 a.m. London time on Wednesday, marking another all-time low for a second consecutive day.
This follows the news that the bank's largest investor, Saudi National Bank, has revealed that it cannot provide any further financial assistance to Credit Suisse due to regulatory issues.
According to a Reuters report, Saudi National Bank Chairman Ammar Al Khudairy stated that they cannot offer additional support because it would exceed the regulatory limit of 10% ownership.
This news came as a significant blow to Credit Suisse, which has been struggling to restore investor confidence and recover from recent scandals and losses.
Investors are also continuing to assess the impact of Credit Suisse's announcement on Tuesday that it had found "material weaknesses" in its financial reporting processes for 2022 and 2021.
The revelation has raised concerns about the bank's risk management practices and has led to fears of potential fines and regulatory sanctions.
Credit Suisse has been under scrutiny following a series of high-profile scandals, including the collapse of Greensill Capital and the Archegos Capital Management saga, which have resulted in billions of dollars in losses for the bank. The bank has also faced legal action from clients over its handling of the collapse of the supply chain finance firm, Greensill.
Credit Suisse's CEO, Thomas Gottstein, has pledged to take "appropriate action" to address the bank's issues and restore investor confidence.
However, with the latest news of Saudi National Bank's inability to provide further financial assistance, the road to recovery for Credit Suisse may prove to be a challenging one.
