Credit Suisse, a bank with a 166-year-old history, is on the brink of failing.
Shares plummeted to an all-time low on Wednesday after the Saudi National Bank (SNB) confirmed that it would not offer any more financial assistance to the institution.
The stock is trading down to 1.60CHF on the Swiss stock exchange.
What’s worse is that the company has not ruled out any government assistance!
But Credit Suisse CEO Ulrich Koerner noted that its liquidity base is “very, very strong,” adding that “we fulfill and overshoot basically all regulatory requirements.”
Credit Suisse Chairman Axel Lehmann also told CNBC on Wednesday during a panel that “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.”
The timing is terrible when you consider this, courtesy of CNBC:
“Investors are also continuing to assess the impact of the bank’s Tuesday announcement that it had found “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.”
And President Joe Biden says the banking system is safe? Yikes!
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