Saudi National Bank chair resigns after Credit Suisse comments | CNN Business

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The chairman of Credit Suisse’s largest shareholder, Saudi National Bank, has resigned less than two weeks after comments he made about the Swiss lender accelerated a plunge in its share price.

The bank was rescued four days later after a crisis of confidence among investors and customers took it to the brink of insolvency. Ammar Al Khudairy had resigned “due to personal reasons” and would be replaced by CEO Saeed Mohammad Al Ghamdi, Saudi National Bank said in a statement Monday. During an interview with Bloomberg TV on March 15, Al Khudairy ruled out increasing the bank’s stake in Credit Suisse.

Less than 24 hours later Credit Suisse borrowed $54 billion from Switzerland’s central bank. But the emergency lifeline was insufficient to stop clients withdrawing deposits at a rate of more than $10 billion a day, ultimately leading to the bank’s historic rescue by larger rival UBS through a government-brokered deal. Saudi National Bank, which is 37%-owned by Saudi Arabia’s sovereign wealth fund, acquired a 9.9% stake in Credit Suisse in October for $1.

 

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