Credit Suisse has new problems, shares fall by another 30%

A representative of the Saudi bank named the main reason as regulatory risks when the share exceeds 10%, but noted that he could name five or six others.

Saudi Arabia bought 9.9% from Credit Suisse at the end of last year for $1.5 billion, but during this time it lost a third of its investment.

According to Bloomberg, the fall in Credit Suisse shares led to a fall in the global banking sector, with the US banking crisis also playing a significant role. Quotes of American Goldman Sachs and Citigroup are down 5%, Deutsche Bank by 9%, and UBS by 8.3%.

The day before, Credit Suisse's stock fell by 5% after the bank recognized "material weakness" in its 2022 and 2021 financial statements due to "insufficient internal controls" over financial results accounting. At that time, the bank's capitalization had fallen by 80% in two years.

At the same time, last year's report was the worst since the financial crisis (a loss of $7.9 billion) and offset all the profits of the previous decade.

Bloomberg wrote that in fact, Credit Suisse can no longer be called an investment bank, as trading brought it a small part of the revenue.

Credit Suisse's problems began two years ago. The Swiss bank was involved in the biggest scandals in the financial markets in recent years. The bank entered the spiral of crisis after the collapse of its Greensill Capial investment fund and then the Archegos investment fund.

Recently, it became known that Credit Suisse had lost one of its largest investors.