Skip to content

Doubts return about Credit Suisse, which falls close to 10% on the stock market

Credit Suisse shares have lost around 10% of their value since the start of today’s trading on the Zurich Stock Exchange, and doubts about the bank’s stability return to the Swiss stock market, after the great ups and downs of the two previous days.

The share of Switzerland’s second largest bank is once again below the psychological barrier of 2 Swiss francs and is now around 1.8, after reaching a record low of 1.5 francs on Wednesday.

The bank, which lost 24% of its stock market value on Wednesday but recovered 19% on Thursday, after announcing that it would receive financial aid from the Swiss National Bank (central), opened today’s session positively but returned to losses after a few minutes.

Investors remain attentive to the price of the bank, one of the 20 largest in Europe, after its main shareholder, the Saudi National Bankannounced that it would no longer invest in it (which influenced the stock market crash two days ago) and the Swiss national bank gave it help after that.

The Swiss National Bank promised in the early hours of Wednesday to Thursday to lend 50,000 million francs (50,600 million euros) to Credit Suisse.

The Swiss government held a meeting last day with authorities from the central bank and with the country’s securities regulatory commission (Finma) to analyze the complicated situation of the bank, although it did not make public statements on the matter (it could do so today, after its regular meeting weekly).

The country’s center and right-wing parties have been optimistic about the bank’s situation, alleging that it has “a crisis of confidence rather than solvency”while the left has asked “full transparency” about the operation to help the bank, and that those responsible are held accountable.

Analysts in the Swiss press stress that despite the bank’s difficult situation, it will not need a state bailout operation, like the one that had to be carried out in 2008 with its main Swiss rival, UBS, due to its exposure to the US real estate crisis.

Then, as a result of financial difficulties, the Swiss government established a system that would force it to help entities “too big to fail” (‘too big to fall’ in stock market jargon).

Source: Elcomercio

Share this article:
globalhappenings news.jpg
most popular