credit Suisse ,CEarly Wednesday, CS stock fell nearly 28% premarket after its biggest supporter said it would not provide more financial support to the Swiss bank. European shares declined as Credit Suisse shares fell. Fresh financial weakness spilled over into US banking stocks, ending Tuesday’s brief respite.
The president of the Saudi National Bank, Credit Suisse’s top shareholder, ruled out further financial intervention for the Zurich-based bank in an interview with Bloomberg early Wednesday. The news comes after Credit Suisse released its delayed annual report on Tuesday, which cited “material weaknesses” in its financial controls and reporting for 2021 and 2022.
The bank has registered losses in the last five quarters. Revenue declined in four of the most recent five reporting periods. Credit Suisse stock has declined 68.6% over the past year. Wednesday’s 27.5% premarket drop sent shares to an all-time low of 1.82.
European Bank refuses to spill US
The Credit Suisse meltdown sent shockwaves across European banks and financials on Wednesday. Trading on European exchanges was temporarily halted for many. In US premarket action, fellow Swiss banks UBS ,UBS) retreated over 9%. German Deutsche Bank ,database) also fell more than 9%.
The weakness rekindled selling among US bank stocks, particularly among large banks with broad international exposure. US banks and financials saw a modest rebound on Tuesday as the financial sector digested regulatory efforts to contain the contagion SVB Financial ,SIVB) And signature bank ,snby,
JP Morgan ,jpm) shares fell more than 3% before market on Wednesday Wells Fargo ,wfc) took a 5% dive.
regional bank first republic ,FRC) And western alliance ,Wall) retreated 5.4% and 8.1%, respectively, on Wednesday morning after rebounding on Tuesday afternoon. Located in Beverly Hills, California Packwest ,pacw), which had returned 33% on Tuesday, fell more than 16% before Wednesday’s opening bell.
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