Bank shares were down on Wednesday after recovering on Tuesday from the turmoil around the collapse of the Silicon Valley bank, driven by issues at Switzerland’s second-biggest lender.
(ticker: CSGN.Switzerland) shares fell more than 20% to a record low after its top shareholder, the Saudi National Bank, said it would not invest more money. Credit Suisse has faced a number of problems over the years, but the latest setback has raised concerns that the banking sector may face more trouble ahead.
Trading was temporarily halted for some large European banks, including France’s Credit Suisse.
(GLE.France), and Italy’s
(UCG.Italy). The European Central Bank said last month that it intended to raise interest rates at its next meeting on March 16, raising concerns about banks.
american regional bank
Western Alliance Bancorp
First Republic Bank
(CMA) retreated in the premarket session. America’s biggest banks
(WFC)—were trading down 4% at the start of the day.
“The banking route has taken another ominous turn,” said Susannah Streeter, head of money markets.
“The concern is that if there is a rapid outflow of deposits, banks may not have enough buffers sitting on large unrealized losses in their bond portfolios.”
Write to Brian Swint at [email protected]