Credit Suisse

Shares in the globally connected Swiss bank Credit Suisse plunged and dragged down other major European lenders.

The Credit Suisse parent bank is not part of EU supervision but it has entities in several European countries that are. “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.” failures, that the bank would “very likely” increase its benchmark rates by a half percentage point to press its The central bank is considered less likely than national supervisors to look the other way at developing problems. A day earlier, Credit Suisse reported that managers had identified “material weaknesses” in the bank’s internal controls on financial reporting as of the end of last year. Credit Suisse stock dropped more than 27 percent, to about 1.6 Swiss francs ($1.73), before clawing back to a 22 percent loss at 1.75 francs ($1.89) on the SIX stock exchange. The turmoil prompted an automatic pause in trading of Credit Suisse shares on the Swiss market and sent shares of other European banks tumbling, some by double digits. The turbulence came a day ahead of a policy meeting by the European Central Bank. investment bank Lehman Brothers in 2008, analysts said, by transferring supervision of the biggest banks to the European Central Bank. The stock has suffered a long, sustained decline: In 2007, the bank’s shares traded at more than 80 francs ($86.71) each. Germany’s Deutsche Bank was down 8 percent, and Britain’s Barclays Bank was down nearly 8 percent. [WATCH: High inflation complicates Federal Reserve’s response to bank failures](https://www.pbs.org/newshour/world/eu-forecasts-recession-this-year-amid-persistent-inflation)

Shares of the beleaguered Swiss lender tumbled on Wednesday, adding to concerns about the banking sector.

The higher the risk of default, the higher the price of the C.D.S., and the higher the cost of funding. al-Khudairy, of Saudi National Bank, that his institution would not invest further in the Swiss bank for regulatory reasons. That discovery came after queries by the Securities and Exchange Commission, which forced the company to delay publication of its annual report. Given Credit Suisse’s struggles, the danger that it could default drove banks and others that do business with Credit Suisse to buy more swaps to cover their increased risk. These include huge trading losses tied to the implosions of the investment firm Archegos and the lender Greensill Capital. The firm “meets the higher capital and liquidity requirements applicable to systemically important banks” and was not directly at risk from the banking turmoil in the United States, the two said. Shares in Credit Suisse tumbled 24 percent on Wednesday on the SIX Swiss Exchange, hitting a record low, and the price of its bonds dropped sharply as well. It did not help that, on Tuesday, the Swiss bank said it had identified “material weaknesses” related to its financial reporting. Unlike Silicon Valley Bank, Credit Suisse is considered a global systemically important financial institution, with $569 billion in assets as of year’s end and vastly stricter capital requirements. The bank also said it would seek to buy back debt of up to 3 billion Swiss francs. He later clarified that his bank would not go above the 9.9 percent it already owned because of regulatory issues. al-Khudairy said the state-owned bank would not put more money into Credit Suisse.

The Swiss National Bank said it would provide liquidity to Credit Suisse if needed, but maintained the bank meets capital requirements imposed on ...

[tech](https://www.forbes.com/sites/tylerroush/2023/03/11/these-companies-roku-lendingclub-roblox-and-more-held-major-funds-in-silicon-valley-bank-when-it-crashed/) companies including Roku and Circle, [collapsed](https://www.forbes.com/sites/conormurray/2023/03/13/what-to-know-about-silicon-valley-banks-collapse-the-biggest-bank-failure-since-2008/?sh=623c36b94c27) suddenly last Friday, after it announced it had lost $1.8 billion in the sale of $21 billion in securities in an effort to quickly make cash. [lost](https://www.forbes.com/sites/dereksaul/2023/03/13/bank-stock-crash-intensifies-losses-top-185-billion-as-analyst-warns-svb-failure-risks-intense-regulator-scrutiny/?sh=3c86703e3f0f) more than $185 billion in market value between last Wednesday and Monday. That same day, New-York-based Signature Bank was [shuttered](https://www.forbes.com/sites/brianbushard/2023/03/13/what-happened-to-signature-bank-the-latest-bank-failure-marks-third-largest-in-history/?sh=76e4484590ff)—marking the second- and third-biggest bank failures in U.S. Economists have expressed concern that the recent failures could trigger a wider phenomenon referred to as [contagion](https://www.forbes.com/sites/jonathanponciano/2023/03/10/biggest-bank-failure-since-great-recession-sparks-overblown-fears-of-contagion-but-big-lingering-risks-remain/?sh=56fce4e129bf), in which the collapse of multiple banks could spark widespread economic turmoil—though other experts believe those fears are overblown, as long as the Federal Reserve does not implement further interest rate hikes. The bank reported a [$1.72 billion loss](https://www.reuters.com/business/credit-suisse-pay-out-another-17-bln-greensill-linked-fund-assets-2021-04-13/) in April 2021 after the collapse of fund partner Greensill Capital, and lost another [$5.5 billion](https://www.wsj.com/articles/inside-credit-suisses-5-5-billion-breakdown-archegos-11623072713) two months later following the collapse of hedge fund Archegos Capital, one of the bank’s big borrowers. California regulators [closed](https://www.forbes.com/sites/tylerroush/2023/03/10/svb-shut-down-by-california-regulator-after-bank-stocks-crash-amid-turmoil/?sh=24c194512897) the bank Friday morning, while the Federal Deposit Insurance Corporation announced Sunday it would make all of its customers whole, regardless of how much they had deposited. [shares dropped](https://www.forbes.com/sites/roberthart/2023/03/15/credit-suisse-stock-plunges-to-record-low-as-bank-concerns-grow/?sh=22630fa92b04) by more than 20%, hitting a record low. [Another Credit Suisse Crisis: Bank Finds 'Material Weaknesses' In Its Financial Reporting](https://www.forbes.com/sites/siladityaray/2023/03/14/credit-suisse-finds-material-weaknesses-in-its-financial-reporting-process/?sh=59731f10419e) (Forbes) [What To Know About Silicon Valley Bank’s Collapse—The Biggest Bank Failure Since 2008](https://www.forbes.com/sites/conormurray/2023/03/13/what-to-know-about-silicon-valley-banks-collapse-the-biggest-bank-failure-since-2008/?sh=623c36b94c27) (Forbes) [Credit Suisse Stock Plunges To Record Low As Bank Concerns Grow](https://www.forbes.com/sites/roberthart/2023/03/15/credit-suisse-stock-plunges-to-record-low-as-bank-concerns-grow/?sh=22630fa92b04) (Forbes) The bank [announced](https://www.forbes.com/sites/roberthart/2022/07/27/credit-suisse-replaces-ceo-after-17-billion-loss/?sh=3e505df7237b) last July it was replacing CEO Thomas Gottstein and undertaking a “comprehensive strategic review” following its financial losses. Fed Chair Jerome Powell suggested last week the central bank could go for a large rate hike, though analysts at Goldman Sachs [doubted](https://www.forbes.com/sites/siladityaray/2023/03/13/svb-collapse-fallout-goldman-analysts-forecast-no-fed-rate-hike-in-march/?sh=1379878229ff) the Fed would increase rates following the “stress in the banking system.” Last month, the bank [reported](https://www.ft.com/content/f0893fa5-6ae4-413a-81f1-f3352967dc59) it suffered its biggest annual loss since the Great Recession in 2008, following a surge of customer withdrawals. The turmoil came one day after the bank’s [announcement](https://www.forbes.com/sites/siladityaray/2023/03/14/credit-suisse-finds-material-weaknesses-in-its-financial-reporting-process/?sh=59731f10419e) Tuesday that it found “material weaknesses,” including a lack of risk assessment, in its 2021 and 2022 financial reporting procedure that could have led to “misstatements” of results.

Swiss central bank promised to back Credit Suisse, which sparked investor panic with record losses and financial reporting errors.

The S&P 500 fell 0.7% on Wednesday, while the [KBW Bank Index,](https://www.cbsnews.com/news/silicon-valley-bank-regional-bank-stock-prices-rebound/) which measures the performance of 24 national and regional banks, declined 3.5%. "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." The Swiss company, which has a much larger balance sheet than SVB, is categorized by financial regulators as a "global systemically important bank" and is deeply interconnected with financial entities, including subsidiaries in the U.S. Kenningham described Credit Suisse's struggles as a "much bigger concern for the global economy" than the health of regional U.S. [Greensill Capital](https://www.bloomberg.com/news/articles/2023-02-28/credit-suisse-seriously-breached-obligations-in-greensill-case) and [Archegos Capital Management](https://www.cbsnews.com/news/archegos-bill-hwang-collapse-fraud-arrest-sec/), which battered the bank in 2021, causing it to lose billions of dollars. [fuels concerns](https://www.cbsnews.com/news/credit-suisse-stocks-down-banks-2023-03-15/) about the global banking system, the broader markets have also retreated. [announced](https://www.finma.ch/en/news/2023/03/20230315-mm-statement/) that it would backstop Credit Suisse if needed, but stressed that the bank "meets the capital and liquidity requirements imposed on systemically important banks," giving Credit Suisse shares a boost in after-hours trading. Credit Suisse later announced in a statement that it would "exercise its option" to borrow up to 50 billion Swiss francs (about $53.6 billion) from the Swiss National Bank in an effort to "pre-emptively strengthen its liquidity." "Credit Suisse has been a slowing moving car crash for years, it seems, but now today's news of course is happening in the vortex of SVB," he told investors in a report. "[Credit Suisse] Group's internal control over financial reporting was not effective as it did not design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements in its financial statements," the bank said in its annual The previous day, Credit Suisse rattled investors by disclosing that it had discovered "material weaknesses" in its 2021 and 2022 financial reports. banks](https://www.cbsnews.com/news/silicon-valley-bank-signature-bank-collapse-joe-biden-cbs-news-explains/).

Large U.S. banks have managed their exposure to Credit Suisse in recent months and view risks from the lender as contained so far, according to three ...

[Silicon Valley Bank](/business/finance/silicon-valley-bank-collapse-what-you-need-know-2023-03-13/) and [Signature Bank](/markets/us/signature-bank-faced-criminal-probe-ahead-its-collapse-bloomberg-news-2023-03-15/), the second and third largest bank failures in U.S. [(.SX7P)](https://www.reuters.com/quote/.SX7P). We are a global bank, under Swiss regulation. Credit Suisse said in a statement that it welcomed the news. A top U.S. CEO, Ulrich Korner, told Channel News Asia on Wednesday: “We are a strong bank.

People walk by the New York headquarters of Credit Suisse on March 15, 2023 in New York City. Spencer Platt | Getty Images. This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC ...

[could make a recession arrive sooner](https://www.cnbc.com/2023/03/15/a-recession-could-come-sooner-on-cooling-bank-lending-.html). [banking stocks plunged 7%](https://www.cnbc.com/2023/03/15/european-markets-live-updates-stocks-data-news-and-earnings.html). Echoing that view, Goldman Sachs on Wednesday [lowered its growth forecast for the U.S.](https://www.cnbc.com/2023/03/15/goldman-sachs-cuts-gdp-forecast-because-of-stress-on-small-banks.html) by 0.3 percentage points to 1.2%. But the Swiss bank's problems really began in 2021, when it lost billions (and credibility) in the Archegos hedge fund scandal — which eventually led to [a dramatic restructuring](https://www.cnbc.com/2022/10/27/credit-suisse-results-and-strategy-q3-2022-earnings-and-overhaul.html) late last year. The renewed volatility in the banking sector — along with Its shares tanked 24.24% after its largest investor, Saudi National Bank, said it [couldn't provide the Swiss bank with further financial assistance](https://www.cnbc.com/2023/03/15/credit-suisse-shares-slide-after-saudi-backer-rules-out-further-assistance.html)due to regulations. Banks, Boockvar said on CNBC's "Squawk Box," are going to "focus more on firming up balance sheets" than on lending. The Nasdaq Composite posted a small gain of 0.05% — technology stocks, such as Netflix (which gained 3%) and Alphabet (which was up 2.28%) managed to avoid the banking downturn. — which appeared to be contained just yesterday — spread to Europe on Wednesday in the form of Credit Suisse. On Tuesday, Credit Suisse acknowledged " Swiss regulators added that Credit Suisse is well capitalized, seeking to assuage fears. Like what you see?

Credit Suisse Group AG said on Thursday it intended to borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank in what it called ...

The bank raised 4 billion Swiss francs from investors in December. The latter had improved to about 150% by March 14, it said. It warned that a further "substantial" loss would come this year. Register for free to Reuters and know the full story [(CSGN.S)](https://www.reuters.com/companies/CSGN.S) said on Thursday it intended to borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank in what it called "decisive action" to boost its liquidity. "Credit Suisse is taking decisive action to pre-emptively strengthen its liquidity by intending to exercise its option to borrow from the Swiss National Bank (SNB) up to CHF 50 billion under a Covered Loan Facility as well as a short-term liquidity facility, which are fully collateralized by high quality assets," Credit Suisse said in a statement.