Credit Suisse loses again on the Stock Exchange despite the 50 billion euro shield - Corriere.it
Credit Suisse sinks again on the stock exchange in Zurich, where in the early afternoon it lost almost 12% to 1.79 francs. The rebound favored by the support of the Swiss Nation Bank, the Swiss central bank, which made 50 billion francs of liquidity available to the credit institution lasted only one day. A shield offered after the collapse of 24.25% recorded on Tuesday, but during the session the Swiss bank had come to lose more than 30%.
Credit Suisse's crash sends European stock markets into the red. The Zurich Stock Exchange lost 0.86%, the Cac 40 of Paris 1.01%, the Dax 30 of Frankfurt 0.87% and the FTSE 100 of London 0.71%. The Ibex 35 in Madrid dropped sharply by 1.21%. More contained sales on the Amsterdam Aex, which lost 0.27%.
If Credit Suisse's malaise comes from afar — in the last year the stock has lost 75% on the stock exchange — the fuse of the last splash was triggered on wednesday when the Saudi National Bank, its main shareholder with 9.88%, said it did not participate in the capital increase decided by the institute due to regulatory constraints in its statute. News taken very badly by investors already unnerved by the crash of the Silicon Valley Bank in the United States on March 10thfollowed two days later by the failure of Signature Bank of New York.
As he stated in an interview with Corriere della SeraMohamed El-Erian, president of Queens' College in Cambridge and advisor to Allianz, the liquidity made available to the SNB should be sufficient to manage the liquidity stress. It does not resolve issues related to Credit Suisse's business model.
To calm the markets, in addition to the use of central bank liquidity, Credit Suisse could leverage other strategic investorswhich support the Saudi Nation Bank in the shareholding structure, including the Qatar Holding with 5.03% and asset manager Olayan Group with 4.93%. During the 2008 crisis, to strengthen its position, rival UBS opened its capital to Singapore's sovereign wealth fund GIC.
Alternatively, to strengthen one's assets, Credit Suisse may decide to sell some of its assetsfrom asset management to the stake in SIX Group, while the bank has already announced thereor spin-off of its investment banking to focus on wealthier customers.