In addition to the European bank stock rout, Signature, a tech- and crypto-focused bank, was seized by federal regulators on Sunday. It is still unclear how far the damage of SVB’s failure could ripple out. “It’s a warning signal, now we are all coming out of many many years of abundant money supply,” he said. It’s the latest in a string of setbacks and even controversies for the Swiss bank, where shares have been hit harder than most by SVB’s collapse, something Lehmann hinted at in Riyadh. Meanwhile, traders piled into credit default swaps, indicating the market expects the bank to default on its debt. The market was not persuaded by Al Khudairy’s reasoning, with a selloff so ferocious that Credit Suisse lost nearly the value of an entire Goldman Sachs and at one point ranked as the world’s 155th-largest bank, as noted by the Financial Times’ Alphaville blog. It’s a regulatory issue,” SNB chairman Ammar Al Khudairy told Reuters Wednesday. “We cannot because we would go above 10%. The rout occurred after the bank’s largest remaining shareholder, the Saudi National Bank, announced Wednesday it would not be increasing its 9.88% stake in the company, citing regulatory hurdles. Just as Lehmann was speaking in Riyadh Wednesday, Credit Suisse shares were in the process of sinking to a record low before trading was halted.
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