Credit Suisse shares experienced a new all-time low for two consecutive days, with the stock dropping by over 24% during Wednesday's trading session. Trading in the bank's plummeting shares was halted several times throughout the morning before recovering slightly but remaining down more than 24% on the day.
Italian Banks Face Sharp Declines and Trading Stoppages
On Wednesday, several Italian banks, including UniCredit, Finecobank, and Monte Dei Paschi, also experienced sharp declines and automatic trading stoppages.
Saudi National Bank Refuses Additional Financial Assistance
Credit Suisse's largest investor, Saudi National Bank, announced it could not provide the Swiss bank with any more financial assistance due to regulatory issues. The SNB, however, expressed satisfaction with Credit Suisse's transformation plan and suggested the bank was unlikely to need extra funds.
Credit Suisse Chairman Avoids Comment on Government Assistance
In a panel session in Riyadh, Credit Suisse Chairman Axel Lehmann declined to comment on whether the bank would require government assistance in the future, stating, "That's not the topic."
Bank Discloses "Material Weaknesses" in Financial Reporting Processes
Investors continue to assess the impact of Credit Suisse's announcement that it had found "material weaknesses" in its financial reporting processes for 2021 and 2022. The bank initially delayed its annual report due to a late call from the U.S. Securities and Exchange Commission (SEC) regarding a technical assessment of previously disclosed revisions.
Higher Withdrawals and Legacy Issues Impact Credit Suisse
Credit Suisse disclosed higher withdrawals of cash deposits, non-renewal of maturing time deposits, and net asset outflows in late 2022, with customer withdrawals exceeding 110 billion Swiss francs in the fourth quarter. The bank has been grappling with a series of scandals, legacy risks, and compliance failures.