Credit Suisse in Trouble After Silicon Valley Bank Collapse
17 March 2023 03:34
On Wednesday, credit suisse shares hit its lowest value on record, following the collapse of US bank, including Silicon Valley Bank. However today, credit suisse shares soared over 30% at Thursday's market open, after the bank said it will borrow up to USD54 billion from the Swiss National Bank.
As of 8:48 AM London Time, shares were up 23% as the Swiss National Bank and the Swiss Financial Market Supervisory Authority, said in a statement on Wednesday, that credit suisse quote meets the capital and liquidity requirements, imposed on systemically important banks end quote.
Previously on Wednesday, credit suisse shares lost more than a quarter of their value, hitting a record low, after the bank's biggest shareholder the Saudi National Bank, told news outlets that it would not put more money into the Swiss Lender.
The turmoil prompted an automatic pause in trading of credit suisse shares on the Swiss Market and sent shares of other European Banks tumbling.
But as mentioned the Swiss Bank's shares are now recovering, surging by 30% on early Thursday, following news of a USD53 billion bailout. Experts also believe that chances of a repeat of the 2008 financial crisis wll be slim.