Credit Suisse shares fall despite Swiss National Bank’s $54 billion bailout

Credit Suisse shares fall despite Swiss National Bank’s $54 billion bailout

Credit Suisse (REUTERS/Jaimi Joy)

Credit Suisse shares fall more than 10% of its value around 12:00 GMT this Friday in the Zurich Stock Exchangeand doubts about the stability of the bank are returning to the Swiss stock market, after the major upheavals of the previous two days. European stock markets had opened in the green but turned red there New York futures are also negative.

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

Investors remain attentive to the price of the bank, one of the 20 largest in Europe, after its main shareholder, the Saudi National Bankwill announce that I wouldn’t invest more in it (which influenced the stock market crash two days ago) and the Swiss national bank to help it after.

The Swiss National Bank promised in the early hours of Wednesday to Thursday to lend 50,000 million francs ($54 billion) to Credit Suisse.

The bank opened the day positively but returned to losses after a few minutes (REUTERS/Dado Ruvic/File)
The bank opened the day positively but returned to losses after a few minutes (REUTERS/Dado Ruvic/File)

The Swiss government held a meeting yesterday with central bank authorities and with the country’s securities regulatory commission (Finma) to analyze the bank’s complicated situation, although it has not made any public statements. about this (he could do so today, after his regular weekly meeting).

The center of the country and the right-wing parties they were optimistic because of the bank’s situation, alleging that it has “a crisis of confidence rather than solvency“, while the left claimed”full transparencyon the aid-to-the-bank operation, and that those responsible are held accountable.

Swiss press analysts point out that despite the bank’s difficult situation, won’t need a state bailoutlike the one that had to be carried out in 2008 with its main Swiss competitor, UBS, because of its exposure to the American real estate crisis.

Thus, following financial difficulties, the Swiss government set up a system which would oblige it to help entities “too big to fail” (“too big to fall” in stock market jargon).

A day after 11 of the largest banks in the United States came together to create a $ 30 billion bailout for Bank of the First Republicthe most fragile of North American financial entities after the collapse of Bank of Silicon Valleycalifornia bank shares they fall by almost 15% in operations before the opening of Wall Street.

The gestures of First Republicwhich closed 10% higher on Thursday, was targeting a 14.39% decline before opening Friday, while PacWest Bancorp he gave 5.85 percent. First Republic also suspended its after-hours dividend, adding pressure on the stock.

He safety planin which many the largest banks in the United Statess, including Bank of America BAC, Citigroup and JPMorgan Chase, initially brought some relief to regional bank stocks, but that optimism appears to have been short-lived.

The 11-bank consortium also includes Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New York Mellon, PNC Financial Services Group, State Street, Truist Financial and US Bancorp.

Major financial entities in the United States stepped forward yesterday Thursday to try to support the struggling bank in the hope of allaying investor doubts about the solvency of the financial system as a whole. But at least in the early morning, the coup seems to yield few results.

(With information from EFE)

Continue reading:

The grim prognosis of “Doctor Catastrophe”: “Credit Suisse is just the tip of the iceberg”
Faced with the Credit Suisse crisis, investors around the world are fleeing to risky assets

Melissa Galbraith
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.For tips or news submission: