Credit Suisse stops its collapse after falling more than 30%

MADRID, 15 Mar.

Credit Suisse stops its collapse after falling more than 30%


The shares of Credit Suisse, which had fallen more than 30% this Wednesday to a record low of 1.55 Swiss francs, recovered part of the ground lost in the last leg of the session and managed to limit its collapse below 20 %.

According to three unidentified people familiar with the situation cited by 'Financial Times', the entity would have requested a public show of support from the Swiss National Bank, something that two of the people consulted indicated that the bank also requested Finma, the financial regulator from Switzerland.

However, for the moment, neither of the two Swiss institutions have intervened publicly.

For her part, the French Prime Minister, Elisabeth Borne, during a speech in the French country's Senate, pointed out that the entity's difficulties have been known for a long time, stressing that this bank is not part of the euro zone and, therefore, it is not subject to European banking regulation.

He also added that the French Finance Minister, Bruno Le Maire, plans to speak with his Swiss counterpart in the next few hours, although he stressed that "the issue is for the Swiss authorities to deal with."

The titles of the second largest Swiss lender began their collapse in the session, after the main shareholder of Credit Suisse ruled out coming to the aid of the entity with an increase in its investment, which represents 9.88% of the share capital of the Swiss bank .

"The answer is absolutely no, for many reasons outside of the simplest reason, which is regulatory and statutory," said the president of the Saudi National Bank, Ammar Al Khudairy, on Wednesday in an interview with Bloomberg TV, collected by Europa Press, when asked if the Arab entity was open to carry out more injections of funds.

"Currently we own 9.8% of the bank and if we go above 10% new rules will apply from either the Arab regulator, the European regulator or the Swiss regulator and we are not inclined to enter into a new regulatory regime," he explained.

Earlier, at a financial conference in Saudi Arabia, Credit Suisse Chairman Axel Lehmann rejected any idea of ​​the need for government assistance, saying it is "not an issue" for the bank, according to Bloomberg.

He also stressed that the current problems of the Swiss entity were not comparable to the recent collapse of Silicon Valley Bank, particularly because the banks are regulated differently.

"We have strong capital ratios, a strong balance sheet," Lehmann said. "We already took the medicine," he added, referring to the extensive restructuring program announced in October by Credit Suisse.