https://www.cnbc.com/2023/03/15/cre...audi-backer-rules-out-further-assistance.html Credit Suisse shares tank over 30% after Saudi backer rules out further assistance PUBLISHED WED, MAR 15 20236:29 AM EDTUPDATED 10 MIN AGO Elliot Smith@ELLIOTSMITHCNBC Hannah Ward-Glenton@HANNAHSWG Sam Meredith@SMEREDITH19 SHARE KEY POINTS Shares of embattled bank Credit Suisse hit another all-time low for a second consecutive day. Credit Suisse’s biggest backer, Saudi National Bank, has said it won’t provide further financial help for the bank. Speaking to CNBC’s Hadley Gamble during a panel session in Riyadh on Wednesday morning, Credit Suisse Chairman Axel Lehmann declined to comment on whether his firm would need any sort of government assistance in the future. In this article CSG.N-CH-0.66 (-29.67%) 0QP5-GB-0.22 (-9.85%) Commuters cycle past a Credit Suisse Group AG bank branch in Basel, Switzerland, on Tuesday, Oct. 25, 2022. Credit Suisse will present its third quarter earnings and strategy review on Oct. 27. Stefan Wermuth | Bloomberg | Getty Images Shares of Credit Suisse on Wednesday plunged to a fresh all-time low for the second consecutive day after a top investor of the embattled Swiss bank said it would not be able to provide any more cash due to regulatory restrictions. Trading in the bank’s plummeting shares was halted several times throughout the morning as it fell below 2 Swiss francs ($2.17) for the first time. RELATED INVESTING NEWS Sellers are targeting this bank because of its deposit mix, but Citi says it’s a buy Deutsche Bank says Charles Schwab liquidity risks are overblown, sticks with buy rating The stock recovered slightly by around midday London time, before extending losses in early afternoon deals. Credit Suisse was last seen trading over 30% lower for the session. The share price rout renewed a broader sell-off among European lenders, which were already facing significant market turmoil as a result of the Silicon Valley Bank fallout. Several Italian banks on Wednesday were also subject to automatic trading stoppages, including UniCredit, FinecoBank and Monte dei Paschi. Credit Suisse’s largest investor, Saudi National Bank, said it could not provide the Swiss bank with any further financial assistance, according to a Reuters report, sparking the latest leg lower. “We cannot because we would go above 10%. It’s a regulatory issue,” Saudi National Bank Chairman Ammar Al Khudairy told Reuters Wednesday. However, he added that the SNB is happy with Credit Suisse’s transformation plan and suggested the bank was unlikely to need extra money. The Saudi National Bank took a 9.9% stake in Credit Suisse last year as part of the Swiss bank’s $4.2 billion capital raise to fund a massive strategic overhaul aimed at improving investment banking performance and addressing a litany of risk and compliance failures. Credit Suisse CEO Ulrich Koerner on Wednesday sought to defend the bank’s liquidity basis, saying it is “very, very strong,” Reuters reported, citing an interview with CAN. Koerner added, “We fulfill and overshoot basically all regulatory requirements.” Meanwhile, speaking to CNBC’s Hadley Gamble during a panel session in Riyadh on Wednesday morning, Credit Suisse Chairman Axel Lehmann declined to comment on whether his firm would need any sort of government assistance in the future. SVB’s collapse a ‘warning signal’ to banking system: Credit Suisse chairman When asked if he would rule out some kind of assistance, Lehmann answered, “That’s not the topic.” “We are regulated, we have strong capital ratios, very strong balance sheet. We are all hands on deck. So that’s not the topic whatsoever.” “material weaknesses” in its financial reporting processes for 2022 and 2021. The Swiss lender disclosed the observation in its annual report, which was initially scheduled for last Thursday but was delayed by a late call from the U.S. Securities and Exchange Commission. The SEC conversation related to a “technical assessment of previously disclosed revisions to the consolidated cash flow statements in the years ended December 31, 2020, and 2019, as well as related controls.” In late 2022 the bank disclosed that it was seeing “significantly higher withdrawals of cash deposits, non-renewal of maturing time deposits and net asset outflows at levels that substantially exceeded the rates incurred in the third quarter of 2022.” Credit Suisse saw customer withdrawals of more than 110 billion Swiss francs in the fourth quarter, as a string of scandals, legacy risk and compliance failures continued to plague it. --------- This concerns a lot as they cannot get quietly a lot of money there. So what will happen next with CS then ? https://www.cnbc.com/2023/03/15/cre...licon-valley-bank-crisis-looks-contained.html Who knows more here ? Any major worldwide banking crisis is a matter of a few days/weeks from now because of Credit Suisse ? Will SNB rescue all us or what can or will likely happen ?
C'mon OP. First the media with this crap and now this? The stock was $2 already. The SNB is NOT ALLOWED to buy any more. So that warrants a threat of a worldwide banking crisis? This crap - all of it - is why the Fed and Treasury have to bail everyone out... because so many of you act like it's the end of the damn world when in reality not much is actually happening.
I would like to think the markets are gonna not shaking, as this disturbs my trading. Such shocks are not good for modelling. They are rare and mostly different. But the Swap rate are ca. 600 bps above for CS and the market cap is vanishing very fast. I mean a major bank with a market cap that low ? It is already below 7.5 billion. If that is going to be reduced another 50% how can this bank survive ? No major backer with fresh money. So at least there would be a news that it will be a final rescue with some major backer from any side. But this would shake the markets even more I bet. This news is still to come. For me it looks like this is all very near on a timeline. But who knows more here regarding Credit Suisse ? It looks like it is bit intransparent and not all news are out here.
I have a problem to take the recent chances I get. It looks cheap on some assets. But the chances could even get much better when there is a major shock coming. So I really hesitate to continue trading this month as I am already up +24% on my hedge fund account this March where I am trading for a small US based hedge fund. The volatility could get too high in the next days, so I better just stay away and wait for my payout on March at begin of April before I look again on new chances for trading. Any shocks cause too high vola and therefore too high drawdowns which I do not want, as I need to be consistent in trading to get more capital to trade with and I have not already the max. capital allocation per trader. This damn Credit Suisse. Who has more news regarding this ? Anyone can make some related forecasts here ?
https://www.cnbc.com/2023/03/15/european-markets-live-updates-stocks-data-news-and-earnings.html LIVE UPDATES UPDATED WED, MAR 15 202310:00 AM UNDEFINED EDT SHARE European stocks slide 2.4% as Credit Suisse craters and banks briefly halted from trade: Live updates Jenni Reid Hannah Ward-Glenton Holly Ellyatt This is CNBC’s live blog covering European markets. European stock markets were sharply lower Wednesday, with banking stocks in deep negative territory amid the global Silicon Valley Bank fallout and more bad news for Credit Suisse. The pan-European Stoxx 600 index was down 2.5%, with all sectors trading in the red. EUROPEAN MARKETS TICKER COMPANY PRICE CHANGE %CHANGE .FTSE FTSE 100 7413.18 -223.93 -2.93 .GDAXI DAX 14812.79 -420.04 -2.76 .FCHI CAC 40 Index 6908.6 -232.97 -3.26 .FTMIB FTSE MIB 25724.64 -1076.34 -4.02 .IBEX IBEX 35 Idx 8784.4 -374.6 -4.09 Banking stocks plunged 6.7%, followed by the energy sector, which was down 5.8%. Credit Suisse dropped to the bottom of the blue-chip index, down 22% at 2:00 p.m. London time, after the bank’s biggest lender, Saudi National Bank, said it would not be able to offer it more financial help. Credit Suisse Group AG RT Quote | Exchange | EUR 2.02-0.34 (-14.41%) Last | 3:47 PM CET The Credit Suisse fall caused a wider banking sell-off to resume after the sector staged a modest recovery Tuesday. BNP Paribas was down 11.1%, Societe Generale was down 12.9%, Commerzbank was down 10.1% and Deutsche Bank was down 8.6%. Several bank stocks, including Credit Suisse, were temporarily halted from trade during the morning due to the steep losses. Deutsche Bank, Societe Generale, Commerzbank and UBS declined to comment. That comes despite buoyant trade in Asia-Pacific markets overnight and on Wall Street Tuesday, where U.S. bank stocks rebounded on optimism that the contagion risk from Silicon Valley Bank’s collapse was contained. U.S. stock futures were lower early Wednesday. Meanwhile, U.K. Finance Minister Jeremy Hunt unveiled his “Spring Budget,” which includes extensions of the cut to fuel duty and of energy support measures. It comes as teachers, civil servants, rail workers and junior doctors strike over pay and working conditions. Hunt also said the British economy was “proving the doubters wrong” as gilt rates, mortgage rates and inflation come down, and that it would avoid a technical recession. 50 MIN AGO Credit Suisse CEO: Our liquidity basis is “very, very strong” Credit Suisse CEO Ulrich Koerner on Wednesday said: “Our capital, our liquidity basis is very, very strong,” Reuters reported, citing an interview with CAN. The comments came as the Swiss bank’s share price plummeted, falling as much as 30% during the session. “We fulfill and overshoot basically all regulatory requirements,” Koerner said. — Jenni Reid 1 HOUR AGO Credit Suisse is ‘Lehman moment’: Roubini Credit Suisse is a “Lehman moment” for European and global markets, ultra-bearish economist Nouriel Roubini wrote on Twitter. ″‘Too big to fail and too big to be saved’. It is not even clear what their various unrealized losses on securities and other assets are,” he added. Roubini also reposted comments he made two days prior, in which he said there was a “risk of global contagion” from a “very fragile” large European bank. “Didn’t want to cause a run & I didn’t mention it was [Credit Suisse] but now this risk is out in the open & the contagion is already severe,” he wrote Wednesday. — Jenni Reid 2 HOURS AGO Investors are ‘cutting risk exposure’ amid banking concerns European banks are being pulled down by continued concerns about the collapse of Silicon Valley Bank, the path of interest rates, and banks’ margins and asset qualities, said Russ Mould, investment director at AJ Bell. But Credit Suisse is being “singled out by increasingly risk-averse investors” amid its ongoing turmoil. “Investors had become bullish on banks thanks to hopes for an economic soft landing, an easing in inflation and a pause or pivot in central bank policy,” he said in emailed comments. “That pivot may be coming but not for reasons investors were expecting, owing to the uncertainties prompted by SVB’s collapse and the possibility that central banks may have already pushed rates to levels whereby either the economy or the financial system (or both) are coming under unexpected strain. “As a result, investors are cutting risk exposure and a scandal-ridden bank is one place they may well be keen to avoid under such circumstances.” — Jenni Reid 3 HOURS AGO Credit Suisse ‘will not be let to go belly up’ European banks were down 6.66% at midday in London. Carlo Franchini, head of institutional clients at Banca Ifigest, said the Credit Suisse news was dragging the sector lower. However, he added: “I believe Credit Suisse’s crisis can be solved and the bank will not be let to go belly up,” as quoted by Reuters. — Jenni Reid 4 HOURS AGO Credit Suisse shares down almost 24%; multiple halts try to prevent further decline Shares of Credit Suisse were down 23.79% around 11 a.m. London time. Trading was halted multiple times by the stock exchange operator as the stock plummeted. The price was halted at $1.7430 just after 11 a.m. London time. — Hannah Ward-Glenton 4 HOURS AGO European banks halt trading as shares plummet Shares of several European banks including Credit Suisse, Societe Generale and Italy’s Monte dei Paschi and UniCredit have been halted from trading as prices plummeted. Credit Suisse was down as much as 21% around 10.33 a.m. London time, followed by Societe Generale, which dropped 9.9%. — Hannah Ward-Glenton 5 HOURS AGO Credit Suisse shares down 10% to fresh record low Shares of embattled bank Credit Suisse hit another all-time low for a second consecutive day, dropping by as much as 10% around 9.47 a.m. London time on Wednesday. Investors are assessing the impact the bank’s Tuesday announcement that it had found “material weaknesses” in its financial reporting processes for 2022 and 2021. — Hannah Ward-Glenton and Elliot Smith
Just decided to stay flat until April (at least) and see how this CS thing works out. A flat position is the strongest position a trader can have. This makes me also more neutral on any views at markets.
This is the time to day trade every day every night. This is the time to earn tons of money. Why do you want to go and hide?!?!??! Why are u avoiding the trading opportunities???!? What strange people!
Credit Suisse is a major derivatives counterparty. If they go under, there will be massive unwinds of hedges and trades which will have a serious ripple effect throughout the market as a whole. "no one is too big to fail. but a lot of firms are too interconnected to fail."
swisschess.gov will bail it out, not too worry about this. when you are down, people will surely knick you along the way.