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Credit Suisse’s downward spiral continues as largest shareholder refuses further assistance

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Credit Suisses downward spiral continues as largest shareholder refuses further assistance

On March 15th, it was reported that the decline of Credit Suisse’s European shares widened to 18%, falling below 2 Swiss francs, causing a circuit breaker to suspend trading. Credit Suisse’s US stock market’s pre market decline also widened to 17%. The chairman of Saudi National Bank, its largest shareholder, said he would never provide more assistance to it.

Credit Suisse Europe shares fell to 18% due to circuit breaker suspension

Analysis based on this information:


Credit Suisse, a leading European bank, has been experiencing a continuous decline in its stocks both in Europe and the United States. On March 15th, reports emerged that the bank’s European shares had fallen by 18%, which is below 2 Swiss francs. This caused a circuit breaker to suspend trading, highlighting the severity of the situation. Additionally, the bank’s US stock market’s pre-market decline also increased to 17%.

These occurrences demonstrate that Credit Suisse is facing significant challenges, and they have been unable to recover for quite some time. The COVID-19 pandemic has hugely impacted the financial sector, and Credit Suisse is no exception. The pandemic has resulted in a significant reduction in the overall profits of financial institutions, and Credit Suisse is grappling to keep up with its peers.

The downturn of Credit Suisse’s stocks has been felt not only by its shareholders but also by its largest investor, the Saudi National Bank. Its chairman recently stated that he would not provide any further assistance to the bank. This is a significant blow to Credit Suisse, as this could have potentially solidified its financial position.

The consistent decline of Credit Suisse’s stocks is also causing concern about the bank’s capital. Credit Suisse is expected to release its regulatory capital ratio results soon. Regulators have already increased the bank’s capital requirement, and the declining stock prices could undermine its compliance with the new requirement.

In conclusion, Credit Suisse’s situation is dire, and the fact that its largest shareholder has refused additional assistance would not provide any relief to the bank. The decline in its stocks is a reflection of the significant challenges that the bank is facing, coupled with the impact of the pandemic. Whether Credit Suisse can turn things around remains to be seen.

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