Credit Suisse Shares Plunge After Saudi Backer Rules Out Further Assistance
Credit Suisse shares took a nosedive after Saudi backer, Olayan Group, ruled out any further assistance to the bank. This news comes after the bank reported a 2.5% slide in European stocks, due to Credit Suisse’s poor performance and banking issues.
CNBC reported that the Credit Suisse Chairman did not see government assistance as a topic for the company, which may have further aggravated investors’ concerns. The Chairman’s statement comes at a crucial time for the bank, as it faces intense criticism over its handling of the Archegos Capital meltdown.
According to Reuters.com, Credit Suisse’s largest backer, the Olayan Group, has said that it cannot put up more cash to bail out the bank. The news caused a 20% drop in the bank’s share price, leading to concerns among investors and shareholders.
InvestorPlace reported that experts believe a combination of factors contributed to the drop in Credit Suisse’s share price, including the ongoing COVID-19 pandemic, political instability, and a drop in oil prices.
Credit Suisse now faces significant challenges in regaining investor confidence, as the bank continues to reel from the Archegos Capital scandal. The bank’s future is now uncertain, with many investors wondering whether Credit Suisse can weather the storm and emerge stronger.