Credit Suisse Stock Tumbles to Record Low as Key Backer Says No More Money
Credit Suisse’s shares fell to a fresh record low for the fifth consecutive day on March 15, following news that its largest investor, Saudi National Bank (SNB), ruled out increasing its stake in the Swiss bank because of regulatory restrictions.
Swiss-listed Credit Suisse shares ended the session down 24 percent; the bank’s U.S.-traded American depositary receipts fell 14 percent. Other U.S.-based bank stocks took hits as well, with JPMorgan closing down almost 5 percent and Wells Fargo and Goldman Sachs closing down about 3 percent. Bank of America fell less than 1 percent.
Trading of Credit Suisse shares was suspended multiple times on the Swiss exchange as the stock dropped below 2 Swiss francs and below $2 on the New York Stock Exchange for the first time on each exchange. Credit Suisse’s plummeting share price also contributed to a broader rout among European lenders, with Société Générale, Banco de Sabadell, and Commerzbank among the hardest hit….