Credit Suisse’s share price plunges, as fear sweeps the market

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What will release the bank from its waking nightmare?

found that shaky shareholders can do considerable damage, too. Saudi National Bank, the firm’s biggest shareholder, appears to be suffering a bad case of buyer’s remorse. Quizzed about any further investment in Credit Suisse, the response from the bank’s chairman was brutal: “Absolutely not, for many reasons outside the simplest reason, which is regulatory and statutory”.

Investors are unlikely to lose everything. They nevertheless have plenty of reasons for concern. Multibillion-dollar losses from Credit Suisse’s dealings with Archegos Capital, a family office that collapsed in 2021, and Greensill Capital, a supply-chain-finance company that suffered the same fate in the same year, are near the top of the list. Last year clients withdrew cash from every corner of the bank.

When shareholders finally got their hands on the report on March 14th, it made for grim reading. At the end of 2022 Credit Suisse posted its fifth consecutive quarterly loss. Raising SFr4bn late last year repaired the bank’s common equity to risk-weighted assets ratio, a crucial indicator of a bank’s capital strength. The figure now stands at a respectable 14.1%, up from 12.6% at the end of September.

Although Ulrich Körner, Credit Suisse’s chief executive, hopes to trim the lender’s cost base and restructure the investment bank, there could still be more pain ahead. The remodelled investment bank, calledFirst Boston, will revolve around Michael Klein. Mr Klein, who served on Credit Suisse’s board of directors until October 2022, is a dealmaking supremo famed for sitting on both sides of the mega mining tie-up between Glencore and Xstrata in 2012.

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Don't worry Biden will save them ...USA to the rescue

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