Current Events > Credit Suisse Shares Plunge as Bank Storm Spreads to Europe

(+) Yeah! (+)

https://www.wsj.com/articles/credit-suisse-shares-plunge-as-bank-storm-spreads-to-europe-7251349d

Credit Suisse Group AG shares fell more than 25% Wednesday and hit a fresh record low, reflecting increasing concerns that troubles that hit regional U.S. banks have migrated across the Atlantic.

Other major European banks took hits, with shares in Frances two major international banks, Socit Gnrale SA and BNP Paribas SA, both down more than 10%. Shares in Germanys Deutsche Bank AG slid 8%.

The drop in Credit Suisse bonds and shares indicates that investors judge that this bank needs to be rescued, said Joost Beaumont, head of bank research at Dutch lender ABN Amro.

If regulators do not handle the Credit Suisse situation well, this will send shockwaves through the whole sector, he said. To make matter worse, both sides of the Atlantic have banking issues.
The intensification of problems at Credit Suisse comes days after two major bank failures in the U.S., raising worries that institutions at the heart of business and commerce are struggling to cope with sharp increases in interest rates over the past year.

tag

Great, I have some of their stock

https://twitter.com/business/status/1636002265868775424?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Etweet

Credit Suisse plunges 30%, most on record, after its top shareholder ruled out providing more assistance

https://gamefaqs.gamespot.com/a/user_image/1/7/3/AAefUOAAER99.jpg

Regular folks have no money
Banks have no money
Nobody have no money

uh oh

https://thehill.com/homenews/3901030-dow-falls-500-points-as-credit-suisse-concerns-deepen-fears-of-banking-crisis/

Dow falls 500 points as Credit Suisse concerns deepen fears of banking crisis

The stock market opened with steep losses Wednesday as concerns about the health of Credit Suisse triggered fears of a broader banking crisis.
The Dow Jones Industrial Average opened with a loss 1.5 percent Wednesday, a decline of almost 500 points after the opening bell. The S&P 500 index opened with a loss of 1.4 percent and the Nasdaq composite opened with a loss of 1.1 percent.
Stock futures began selling off before the stock market opened Wednesday as U.S. traders watched shares of Credit Suisse plunge more than 30 percent in overseas trading, according to CNBC. Investors began to lose confidence in the bank after the chairman of the Saudi National Bank, Credit Suisses largest investor, told Reuters that the Saudi central bank would not boost its investment in the troubled Swiss firm.
Credit Suisse, Europes second largest bank, has faltered under years of scandals and financial woes. Credit Suisse also operates in the U.S. and is subject to the strictest Federal Reserve supervision and stress tests. Silicon Valley Bank, which collapsed Friday and set off a global banking scare, was exempted from those rules under a 2018 bipartisan law signed by former President Trump.

Credit Suisse chairman Axel Lehmann said Wednesday at a conference in Saudi Arabia that the bank was in good financial shape, according to the Wall Street Journal.
The Credit Suisse selloff is the latest aftershock of the Silicon Valley Collapse to hit financial markets. After falling through most of Monday, bank stocks rebounded Tuesday as the emergency actions taken by federal officials over the weekend appeared to reassure investors.

Even so, the new concerns over Credit Suisse quickly spread through markets Wednesday, leading to losses for Goldman Sachs, JPMorgan Chase, American Express, and a slew of other banks as the market opened.
Shares of First Republic Bank, another California-based bank with tens of billions of dollars in uninsured deposits, were down more than 15 percent after the opening bell. First Republic is one of six regional banks who may be downgraded by Moodys Analytics over concerns about their balance sheets.
President Biden has called on Congress to bolster banking regulations after the Federal Reserve, Federal Deposit Insurance Corp. and Treasury Department took emergency action this weekend to snuff out a potential banking panic.
The FDIC took over Silicon Valley Bank and Signature Bank over the weekend and pledged to give customers of both failed banks full access to all of their deposits. While the vast majority of deposits at Silicon Valley and Signature were not covered by the FDICs $250,000 per account threshold for insurance, the agency said it would back up all of the deposits at each bank for financial stability concerns.
The Fed also opened an emergency lending facility in which banks can exchange Treasury bonds or other securities for low-interest-rate loans. The program is intended to make sure banks have enough cash on hand to cover deposits without having to sell bonds and other securities, which have dropped in value, for a loss on the open market.
Those emergency actions appeared to reassure investors Tuesday, but Wall Street experts warn that a fundamental fix may be necessary.

I forget if it was Credit Suisse or a similar name, but I remember a few years ago people loved the stock because it paid a dividend every month. But if you looked at the price history there was no growth and in fact it was getting less valuable over time

https://www.investors.com/news/bank-crisis-u-s-banks-head-for-more-losses-rattled-by-european-weakness/

Bank Crisis: U.S. Banks Head For More Losses, Rattled By European Weakness

U.S. banks headed into another round of losses Wednesday, after Tuesday's brief rally. Overseas, Credit Suisse cratered to record lows after it was denied financial aid from its backers, dragging European banks and markers lower, and raising concerns for banks with international exposure.

he chairman of Saudi National Bank, Credit Suisse's top shareholder, ruled out further financial intervention for the Zurich-based bank in an interview with Bloomberg early Wednesday. The news comes after Tuesday's release of Credit Suisse's delayed annual report, which noted "material weaknesses" to its financial controls and reporting for 2021 and 2022. Credit Suisse stock fell nearly 30% to 1.77 Wednesday morning.Bank Crisis, Stocks Falter
The losses among European financials rekindled selling among U.S. bank stocks. Particularly hard hit were larger banks with broad international exposure. U.S. banks and financials saw a slight rebound Tuesday as the financial sector digested regulatory efforts to contain the contagion from the bank crisis sparked by SVB Financial (SIVB) and Signature Bank (SNBY).
Among Dow Jones industrial names, Goldman Sachs (GS), American Express (AXP) and JPMorgan (JPM) were early downside leaders, all posting declines in the 4% range.
On the S&P 500, Wells Fargo (WFC) took a 4% dive. Regional banks First Republic (FRC) and Western Alliance (WAL) retreated 14.9% and 8.1%, respectively. Beverly Hills, Calif.-based PacWest (PACW), which had rebounded 33% on Tuesday, tumbled 22% after Wednesday's bell.
Late Monday, Moody's Investor Service cut its outlook on the U.S. banking system to negative from stable, CNBC reported. And the rating agency plans to review six regional banks for potential downgrades to reflect "the extremely volatile funding conditions for some U.S. banks exposed to the risk of uninsured deposit outflow."
First Republic Bank, Intrust Financial, UMB Financial (UMBF), Zions Bancorp, Western Alliance Bank and Comerica (CMA) all received downgrade warnings.

WingsOfGood posted...

uh oh

https://thehill.com/homenews/3901030-dow-falls-500-points-as-credit-suisse-concerns-deepen-fears-of-banking-crisis/

Gee. The thing that people have been said is coming for years now is coming. Who would have thought that allowing banks to essentially do whatever they want might blow up in our faces? Whodathunkit?

Damn_Underscore posted...

I forget if it was Credit Suisse or a similar name, but I remember a few years ago people loved the stock because it paid a dividend every month. But if you looked at the price history there was no growth and in fact it was getting less valuable over time

It wasn't the Credit Suisse stock itself but it was a note issued by Credit Suisse. And you're correct, it was always a bad investment.

Credit Suisse is a menace

hasn't credit suisse been fucked for months now?

I guess Biden was right US banks are fine. They made no mention of Swiss banks failing lol.

It's happening!

Maybe it'll be the bankers that starve this time.

ALIEN_WORK2HOP posted...

hasn't credit suisse been fucked for months now?

Its been fucked for years but we're basically at the same spot we were at a few months ago.

This and SVB are each completely isolated. CS has dealt with corruption and incompetence within its organization for many years and they just can't seem to overcome it. SVB simply made stupid mistakes. Neither of these issues signal any broader issues in the banking system.

And honestly even stricter regulation may not have stopped the SVB issues.

Everyone is waaaay overblowing these issues.

Dan_Haren- posted...

This and SVB are each completely isolated

Incorrect, might want to read the articles above.

Or is this part of your capitalism shilling gimmick?

WingsOfGood posted...

Incorrect, might want to read the articles above.

Or is this part of your capitalism shilling gimmick?

Please, explain, you have absolutely no idea what he talking about as usual

Dan_Haren- posted...

Please, explain, you have absolutely no idea what he talking about as usual

Oh the irony

read the articles but fine I will assist a man who NEEDS help and cannot help themselves

https://www.bbc.com/news/business-64964881

Credit Suisse shares plunge as bank fear widens

Shares in troubled Swiss banking giant Credit Suisse have plunged to a record low as investors remain on edge after the collapse of Silicon Valley Bank.
Credit Suisse's shares sank by 30% at one point, extending declines from Tuesday, when it disclosed "material weakness" in its accounting controls.
Investors are worried about how the bank, beset by problems, will handle the fallout from US bank failures.
The worries spread across share markets with all major indexes falling sharply.
"The problems in Credit Suisse once more raise the question whether this is the beginning of a global crisis or just another 'idiosyncratic' case," wrote Andrew Kenningham of Capital Economics.
The bank insisted its financial position was not a concern, with the chief executive saying its cash reserves were "still very very strong."
The three major share indexes in the US were all lower in opening trade in New York, while major exchanges across Europe - including the FTSE 100 - were down more than 2.5% at mid-afternoon.
The FTSE 100 has fallen 6% in the past week to reach a three-month low.
Problems at a major bank like Credit Suisse could have widespread repercussions. Banking shares around the world were under pressure, with the Stoxx Europe banking index down more than 6%.
The turmoil in the banking sector began last week with the collapse of SVB, the US's 16th-largest bank.
The bank - which specialised in lending to technology companies - was shut down by US regulators on Friday in what was the largest failure of a US bank since 2008. SVB's UK arm was snapped up for 1 by HSBC.
In the wake of the SVB collapse, New York-based Signature Bank also went bust, with the US regulators guaranteeing all deposits at both.

But fears have persisted over the fallout from the collapse and trading in bank shares has been volatile this week.
Credit ratings giant Moody's on Tuesday warned of more pain ahead for the US banking system, cutting its outlook for the sector to "negative" from stable to reflect the "rapid deterioration in the operating environment".
"It's too early to know how widespread the damage is," Laurence Fink, chief executive of investment giant BlackRock wrote in an annual letter to investors. "The regulatory response has so far been swift, and decisive actions have helped stave off contagion risks. But markets remain on edge."
Credit Suisse, founded in 1856, has faced a string of scandals in recent years, including money laundering charges and other issues.
It lost money in 2021 and again in 2022 - its worst year since the financial crisis of 2008 - and has warned it does not expect to be profitable until 2024.
Shares in the firm had already been severely hit before this week - their value falling by roughly two-thirds last year.
Amid the troubles, customers have been transferring funds elsewhere - including 110bn Swiss francs ($120bn) in the last three months of 2022.
The bank's disclosure on Tuesday of "material weakness" in its financial reporting controls renewed concerns, prompting major investor the Saudi National Bank to say it would not inject further funds into the Swiss lender.
The concerns weighed on share prices of regional banks in the US and even the biggest US banks, which analysts have said should be more stable, saw their shares reverse course after Tuesday's market recovery.
"Credit Suisse was widely seen as the weakest link among Europe's large banks, but it is not the only bank which has struggled with weak profitability in recent years," Mr Kenningham said.

Dan_Haren- posted...

Please, explain, you have absolutely no idea what he talking about as usual

bruh there is no arguing with WOG. save yourself the time unless you're bored at work or something.

his gimmick is to cede zero ground on anything, regardless of reality.

he will say "i support 100 year prison sentences for mass murderers"
you will say "eh i support 99 year prison sentences for mass murderers"
he will say "holy shit you support mass murderers"

it's all there is. there is no "good enough" for him. if you don't agree completely, you will be labeled a mass-murderer shill for life.

TaylorHeinicke posted...

bruh there is no arguing with WOG. save yourself the time unless you're bored at work or something.

his gimmick is to cede zero ground on anything, regardless of reality.

he will say "i support 100 year prison sentences for mass murderers"
you will say "eh i support 99 year prison sentences for mass murderers"
he will say "holy shit you support mass murderers"

it's all there is. there is no "good enough" for him. if you don't agree completely, you will be labeled a mass-murderer shill for life.

did you not read the articles?

four are posted ITT

Bro literally has no idea what's going on that's actually pretty funny.

He literally is incapable of explaining and all he can do is post the article lmao

Dan_Haren- posted...

Bro literally has no idea what's going on that's actually pretty funny.

He literally is incapable of explaining and all he can do is post the article lmao

You can't read?

[LFAQs-redacted-quote]


A bunch of banks have tanked stocks because of the SVB scare. Infact Suisse would been ok if not for SVB. What happened was the Saudi investor hit their max and couldn't give them more.

Normally that wouldn't do anything. But because SVB and others failed it instead tanked Suisse.

All you guys got to do is read the fucking articles holy moly. That is not directed at you Metallica but the other two guys.

Good.

Burn them all.

PepsiWithCoke posted...

Good.

Burn them all.

That happens how will you eat?

Dan_Haren- posted...

Bro literally has no idea what's going on that's actually pretty funny.

He literally is incapable of explaining and all he can do is post the article lmao

Business as usual for one of his topics lmfaoh ahahhaha

TaylorHeinicke posted...

Business as usual for one of his topics lmfaoh ahahhaha

leave it to TaylorHeninicke to not read the last few posts and then bump it thinking he got me

so sad

So they're bailing out all the SVB people after saying they wouldn't?

credit Suisse secures 54 BILLION loan

https://nypost.com/2023/03/16/credit-suisse-fears-linger-swiss-national-bank-approves-54b-loan/

shares of Credit Suisse rebounded Thursday after Swiss National Bank extended a $54 billion lifeline but investors remained skittish about a potential collapse, with some analysts arguing that a rescue is inevitable.After news of the Swiss governments support broke late Wednesday, the European Central Bank hiked interest rates by half a percentage point on Thursday a move that could add more pressure on Credit Suisse and other lenders.

BAILED

OUT

https://www.theguardian.com/business/2023/mar/16/credit-suisse-takes-50bn-loan-from-swiss-central-bank-after-share-price-plunge

Credit Suisse takes $54bn loan from Swiss central bank after share price plunge

Credit Suisse has announced that it will take a CHF50bn ($53.7bn) loan from the Swiss central bank, in an action it says will pre-emptively strengthen its liquidity as it moves to stem a crisis of confidence a day after its share price plummeted.
This additional liquidity would support the bank in taking the necessary steps to create a simpler and more focused bank built around client needs, its statement said. The bank said it was also making buyback offers on about $3bn worth of debt.

The bank said its borrowing measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders.
Asian stocks slid on Thursday and investors turned to the safety of gold, bonds and dollars as fears of a broader crisis intensified despite the intervention, leaving markets on edge ahead of a European Central Bank meeting (ECB) later on Thursday.
Expectations of a 50 basis-point rate rise in Europe have evaporated as markets radically rethink the global interest rate outlook. Money market pricing implies a less than a 20% chance of such a rise from the ECB, down from 90% a day earlier.
The move to shore up Credit Suisses finances came a few hours after the central bank and the Swiss financial markets regulator issued a joint statement pledging emergency funding if needed. They insisted there was no direct risk of contagion from turmoil in the US banking system after the sudden collapse last week of the US lender Silicon Valley Bank.
Credit Suisse meets the capital and liquidity requirements imposed on systemically important banks, the Swiss National Bank said. Credit Suisse is one of 30 banks globally deemed too big to fail, forcing it to set aside more cash to weather a crisis.

TOO BIG TO FAIL

TC still incapable of explaining in his own words what happened to SVB and CS, yet he argues tooth and nails....its literally jokes.

Dan_Haren- posted...

TC still incapable of explaining in his own words what happened to SVB and CS, yet he argues tooth and nails....its literally jokes.

See post #25 or are you just a troll?

@Dan_Haren-

Except none of that is accurate or true. Please explain why SVB failed and how that led to CS needing rescue.

Dan_Haren- posted...

Except none of that is accurate or true. Please explain why SVB failed and how that led to CS needing rescue.

Holy moly

Guess you are a trumper who is all "fake news! conspiracies!" ?

lmao you literally can't.

Literally the type of dude who reads headlines and gets enraged but has absolutely zero substance to anything ur saying. Across all your topics you generally have no clue wtf you're talking about. I haven't seen you make a single sensible post like ever.

Dan_Haren- posted...

lmao you literally can't.

Literally the type of dude who reads headlines and gets enraged but has absolutely zero substance to anything ur saying. Across all your topics you generally have no clue wtf you're talking about. I haven't seen you make a single sensible post like ever.

So you are saying that according to you it is not accurate that Credit Suisse shares fell after Saudi investor could not provide them more money and other investors got spooked ?

Please explain what happened then. Let us see how unhinged your reality truly is.

https://www.cnbc.com/2023/03/15/credit-suisse-shares-slide-after-saudi-backer-rules-out-further-assistance.html

Credit Suisse shares tank after Saudi backer rules out further assistance

The share price rout renewed a broader sell-off among European lenders, which were already facing significant market turmoil as a result of the Silicon Valley Bank fallout. Some of the biggest decliners included Frances Societe Generale, Spains Banco de Sabadell and Germanys Commerzbank.

cmon, let us see it

go on

Why did the saudi investors not provide them more money?

Dan_Haren- posted...

Why did the saudi investors not provide them more money?

read the article, it is all there

TaylorHeinicke posted...

his gimmick is to cede zero ground on anything, regardless of reality.

so now that you guys finally realize I was correct on this, will you admit it?

this will be a funny irony to watch play out.

and fyi I have admitted many times before when I was wrong.
See I actually read articles and such and if I hold an opinion in opposition to the facts I will concede.

But I just gave my take on this issue then supplied article saying exact same thing and Dan is nowhere to be found now.

Just admit your were wrong this time bro. It really isn't hard.

And lesson to learn in the future, read the fucking artciles

WingsOfGood posted...

read the article, it is all there

Explain it please. Or highlight me the quote that explains why they backed out.

You have no idea.

And please explain how SVB collapsed. I'm waiting.

Dan_Haren- posted...

Explain it please. Or highlight me the quote that explains why they backed out.

You have no idea.

And please explain how SVB collapsed. I'm waiting.

I already told you to look at post #25

https://gamefaqs.gamespot.com/boards/400-current-events/80379954/972187802

Are you..... ok?

if you got like actual issues let me know, don't want to mock someone who got actual issues

No explaination, as I thought has no clue what he's talking about.

Dan_Haren- posted...

No explaination, as I thought has no clue what he's talking about.

I linked it to you

https://gamefaqs.gamespot.com/boards/400-current-events/80379954/972187802

thanks for the unhinged bump tho, keep up the good work

SVB was not bailed out. Deposits are made whole, investors are fucked. The way it should be imo

The bankers waiting for that inevitable bailout money:

https://m.youtube.com/watch?v=7edeOEuXdMU

__aCEr__ posted...

It wasn't the Credit Suisse stock itself but it was a note issued by Credit Suisse. And you're correct, it was always a bad investment.

It was their Silver stock.