Shares of Credit Suisse crashed more than 20% Wednesday to a new record low after its biggest backer appeared to rule out providing any more funding for the embattled Swiss lender.
In an interview with Bloomberg, the chairman of the Saudi National Bank said it would not increase its stake in Credit Suisse.
“The answer is absolutely not, for many reasons. I’ll cite the simplest reason, which is regulatory and statutory. We now own 9.8% of the bank — if we go above 10% all kinds of new rules kick in, whether be it by our regulator or the European regulator or the Swiss regulator,” Ammar Al Khudairy told Bloomberg. “We’re not inclined to get into a new regulatory regime.”
He made similar comments to Reuters on the sidelines of a conference in Saudi Arabia.
Once a big player on Wall Street, Credit Suisse has been hit by a series of missteps and compliance failures over the past few years that have damaged its reputation with clients and investors, and cost several top executives their jobs.
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Article URL : https://www.cnn.com/2023/03/15/investing/credit-suisse-shares-saudi-national-bank/index.html