(News Bulletin 247) – The Swiss bank plunges to the Zurich Stock Exchange, after one of its main shareholders said that he did not intend to bring fresh money to the establishment if necessary.

Banks go from Charybdis to Scylla on the Stock Exchange in recent days. After having already been battered by fears after the bankruptcy of the American bank Silicon Valley Bank (SBV), battered by the flight of deposits from its customers, the sector collapsed on the stock market on Thursday, driven by the plunge of Credit Suisse.

In Paris, BNP Paribas plunged by almost 10% while Societe Generale fell by 9.9%. In Frankfurt Deutsche Bank lost 6%. On Wall Street, in pre-opening, JPMorgan dropped 2.3% and Goldman Sachs fell 3.3%.

However, these releases remain much lower than that of Credit Suisse, which fell by 22% on the Zurich Stock Exchange.

Saudi National Bank Chairman Ammar Al Khudairy told Bloomberg TV that there was no way his group, Credit Suisse’s largest shareholder with nearly 10%, would inject cash into the Swiss bank if it came to need it.

CDS worry

According to Bloomberg, the price of the Swiss bank’s Credit Default Swaps, instruments used to hedge against the risk of default by a country or a company, has now reached a level “close to signaling serious concerns” from investors.

“Traders are worried about Credit Suisse’s ability to survive (…) and, in the event [où elle ne survivrait pas, NDLR]the magnitude of the crisis that is looming,” said Naeem Aslam of Zaye Capital.

The same Ammar Al Khudairy was however a little more reassuring with Reuters, judging that the Swiss establishment should not need more capital. “I don’t think they need any extra money; if you look at their ratios, they are good. And they operate under a strong regulatory regime in Switzerland and other countries,” he said. he told the British Press Agency.

For Amandine Gerard, president of Financière de l’arc, the downward movements on other banks can be explained by the fact “that we are coming back to the problem of the interbank system”. “The banks lend to each other and if there starts to be mistrust at this level, we encounter a liquidity problem”, she explained on the antenna of BFM Business.

Credit Suisse has suffered a series of recent setbacks and had to carry out a capital increase of 4 billion Swiss francs at the end of 2022 to strengthen its balance sheet. In 2022, the bank suffered a net loss of 7.3 billion Swiss francs (nearly 7.4 billion euros) against the backdrop of massive withdrawals of money from its customers