{"id":2481,"date":"2023-03-17T11:02:34","date_gmt":"2023-03-17T16:02:34","guid":{"rendered":"https:\/\/embarrdowns.com\/credit-suisse-plummets-to-all-time-low-of-1-76-prompting-global-banking-crisis-fears\/"},"modified":"2023-03-17T11:02:34","modified_gmt":"2023-03-17T16:02:34","slug":"credit-suisse-plummets-to-all-time-low-of-1-76-prompting-global-banking-crisis-fears","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/credit-suisse-plummets-to-all-time-low-of-1-76-prompting-global-banking-crisis-fears\/","title":{"rendered":"Credit Suisse Plummets to All-Time Low of $1.76, Prompting Global Banking Crisis Fears"},"content":{"rendered":"

Shares in Credit Suisse plummeted to an all-time low of $1.76 on Wednesday, a drop of more than 20 percent, before rebounding to slightly above $2 on Thursday.[0]<\/a><\/sup> The decline followed news that Saudi National Bank, Credit Suisse\u2019s largest investor, would not provide the Swiss bank with additional financial assistance.[1]<\/a><\/sup> Following the takeover of Silicon Valley Bank (SVB) and Signature Bank, the news concerning Credit Suisse has raised fears of a global banking crisis.[1]<\/a><\/sup><\/p>\n

Credit Suisse offered to buy back around 3 billion francs’ worth of debt, relating to 10 U.S. dollar-denominated senior debt securities and four euro-denominated senior debt securities.[2]<\/a><\/sup> On Thursday, Credit Suisse said it intended to borrow a staggering $54 billion from the Swiss National Bank as an unprecedented lifeline to boost its liquidity.[3]<\/a><\/sup><\/p>\n

Class action lawsuits have been filed against Credit Suisse in federal court, alleging the bank made false or misleading statements about its finances and failed to adequately disclose that it suffered from a “significant” increase in customer outflows at the end of 2022.[3]<\/a><\/sup> Investors in Credit Suisse have been on edge for a while now, even prior to the banking crisis that occurred in the past week.[4]<\/a><\/sup> The bank’s shares declined by 69.3% during the year 2022[4]<\/a><\/sup><\/p>\n

US banks launched a $30 billion rescue of First Republic to stem the spiraling crisis, and US Treasury Secretary Janet Yellen said last night that \u201cour [the US] banking system is sound and that Americans can feel confident that their deposits will be there when they need them\u201d.[5]<\/a><\/sup> Central banks around the world have been raising interest rates to try to slow down inflation and cool the global economy.[6]<\/a><\/sup><\/p>\n

Credit Suisse is categorized by the Financial Stability Board, an international body that monitors the financial system, as a \u201cglobal systemically important bank,\u201d along with just 30 others, including JPMorgan Chase, Bank of America and the Bank of China.[3]<\/a><\/sup> Al Khudairy is also appealing for calm after his comments sparked Wednesday\u2019s market chaos, saying \u201cIt\u2019s panic, a little bit of panic.[4]<\/a><\/sup> I believe completely unwarranted, whether it be for Credit Suisse or for the entire market.[4]<\/a><\/sup><\/p>\n

0. <\/span>“Wall Street Breakfast: Credit Suisse’s $54B Lifeline” Seeking Alpha, 16 Mar. 2023, https:\/\/seekingalpha.com\/article\/4587870-wall-street-breakfast-credit-suisses-54b-lifeline<\/a><\/a><\/p>\n

1. <\/span>“AMC Fans Mock Credit Suisse as Share Prices Fall Below Meme Stock” Newsweek, 16 Mar. 2023, https:\/\/www.newsweek.com\/amc-fans-mock-credit-suisse-share-prices-fall-1788328<\/a><\/a><\/p>\n

2. <\/span>“Credit Suisse sheds another 9% as traders digest emergency liquidity” CNBC, 17 Mar. 2023, https:\/\/www.cnbc.com\/2023\/03\/17\/credit-suisse-sheds-another-5percent-as-traders-digest-emergency-liquidity.html<\/a><\/a><\/p>\n

3. <\/span>“Credit Suisse: Imperiled global investment bank has CCP-tied official on risk committee” Fox News, 17 Mar. 2023, https:\/\/www.foxnews.com\/politics\/credit-suisse-imperiled-global-investment-bank-ccp-tied-official-risk-committee<\/a><\/a><\/p>\n

4. <\/span>“Credit Suisse was so fragile that a blunt answer in a TV interview was enough to send it to ask the Swiss central bank for $54 billion” Fortune, 16 Mar. 2023, https:\/\/fortune.com\/2023\/03\/16\/credit-suisse-shares-swiss-national-bank-bonds\/<\/a><\/a><\/p>\n

5. <\/span>“SVB parent files for bankruptcy; Credit Suisse shares slide again amid banking crisis \u2013 live” The Guardian, 17 Mar. 2023, https:\/\/www.theguardian.com\/business\/live\/2023\/mar\/17\/markets-us-banks-first-republic-rescue-business-live<\/a><\/a><\/p>\n

6. <\/span>“Inside Credit Suisse: Why big Swiss bank with Triangle presence is in trouble” WRAL TechWire, 17 Mar. 2023, https:\/\/wraltechwire.com\/2023\/03\/17\/inside-credit-suisse-why-big-swiss-bank-with-triangle-presence-is-in-trouble\/<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shares in Credit Suisse plummeted to an all-time low of $1.76 on Wednesday, a drop of more than 20 percent, before rebounding to slightly above $2 on Thursday.[0]<\/a><\/sup> The decline followed news that Saudi National Bank, Credit Suisse\u2019s largest investor, would not provide the Swiss bank with additional financial assistance.[1]<\/a><\/sup> Following the takeover of Silicon Valley Bank (SVB) and Signature Bank, the news concerning Credit Suisse has raised fears of a global banking crisis.[1]<\/a><\/sup><\/p>\n

Credit Suisse offered to buy back around 3 billion francs’ worth of debt, relating to 10 U.S. dollar-denominated senior debt securities and four euro-denominated senior debt securities.[2]<\/a><\/sup> On Thursday, Credit Suisse said it intended to borrow a staggering $54 billion from the Swiss National Bank as an unprecedented lifeline to boost its liquidity.[3]<\/a><\/sup><\/p>\n

Class action lawsuits have been filed against Credit Suisse in federal court, alleging the bank made false or misleading statements about its finances and failed to adequately disclose that it suffered from a “significant” increase in customer outflows at the end of 2022.[3]<\/a><\/sup> Investors in Credit Suisse have been on edge for a while now, even prior to the banking crisis that occurred in the past week.[4]<\/a><\/sup> The bank’s shares declined by 69.3% during the year 2022[4]<\/a><\/sup><\/p>\n

US banks launched a $30 billion rescue of First Republic to stem the spiraling crisis, and US Treasury Secretary Janet Yellen said last night that \u201cour [the US] banking system is sound and that Americans can feel confident that their deposits will be there when they need them\u201d.[5]<\/a><\/sup> Central banks around the world have been raising interest rates to try to slow down inflation and cool the global economy.[6]<\/a><\/sup><\/p>\n

Credit Suisse is categorized by the Financial Stability Board, an international body that monitors the financial system, as a \u201cglobal systemically important bank,\u201d along with just 30 others, including JPMorgan Chase, Bank of America and the Bank of China.[3]<\/a><\/sup> Al Khudairy is also appealing for calm after his comments sparked Wednesday\u2019s market chaos, saying \u201cIt\u2019s panic, a little bit of panic.[4]<\/a><\/sup> I believe completely unwarranted, whether it be for Credit Suisse or for the entire market.[4]<\/a><\/sup><\/p>\n

0. <\/span>“Wall Street Breakfast: Credit Suisse’s $54B Lifeline” Seeking Alpha, 16 Mar. 2023, https:\/\/seekingalpha.com\/article\/4587870-wall-street-breakfast-credit-suisses-54b-lifeline<\/a><\/a><\/p>\n

1. <\/span>“AMC Fans Mock Credit Suisse as Share Prices Fall Below Meme Stock” Newsweek, 16 Mar. 2023, https:\/\/www.newsweek.com\/amc-fans-mock-credit-suisse-share-prices-fall-1788328<\/a><\/a><\/p>\n

2. <\/span>“Credit Suisse sheds another 9% as traders digest emergency liquidity” CNBC, 17 Mar. 2023, https:\/\/www.cnbc.com\/2023\/03\/17\/credit-suisse-sheds-another-5percent-as-traders-digest-emergency-liquidity.html<\/a><\/a><\/p>\n

3. <\/span>“Credit Suisse: Imperiled global investment bank has CCP-tied official on risk committee” Fox News, 17 Mar. 2023, https:\/\/www.foxnews.com\/politics\/credit-suisse-imperiled-global-investment-bank-ccp-tied-official-risk-committee<\/a><\/a><\/p>\n

4. <\/span>“Credit Suisse was so fragile that a blunt answer in a TV interview was enough to send it to ask the Swiss central bank for $54 billion” Fortune, 16 Mar. 2023, https:\/\/fortune.com\/2023\/03\/16\/credit-suisse-shares-swiss-national-bank-bonds\/<\/a><\/a><\/p>\n

5. <\/span>“SVB parent files for bankruptcy; Credit Suisse shares slide again amid banking crisis \u2013 live” The Guardian, 17 Mar. 2023, https:\/\/www.theguardian.com\/business\/live\/2023\/mar\/17\/markets-us-banks-first-republic-rescue-business-live<\/a><\/a><\/p>\n

6. <\/span>“Inside Credit Suisse: Why big Swiss bank with Triangle presence is in trouble” WRAL TechWire, 17 Mar. 2023, https:\/\/wraltechwire.com\/2023\/03\/17\/inside-credit-suisse-why-big-swiss-bank-with-triangle-presence-is-in-trouble\/<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":2480,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2481"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=2481"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/2481\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/2480"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=2481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=2481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=2481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}