Chaos at Credit Suisse triggers price roller coaster in bank stocks

Dusseldorf A few words from Ammar Al Khudairy were enough to throw Credit Suisse into chaos. On Wednesday, the head of the supervisory board of the Saudi National Bank, currently the largest shareholder in the major Swiss bank, had ruled out injecting fresh capital in an emergency.

This caused the price of Credit Suisse shares to fall by more than 30 percent to an all-time low of around one and a half francs. On the night of Thursday, Credit Suisse then announced that it wanted to borrow up to 50 billion Swiss francs from the Swiss National Bank. That calmed the markets on Thursday.

Nevertheless, the situation in the banking sector remains tense. The fear that the banking crisis could spill over into Europe after the collapse of the Silicon Valley Bank is still there: “You can see that the supervisors react quickly, and they wouldn’t do it if they didn’t take it very seriously just happened,” says Jakob Blume, Handelsblatt correspondent in Zurich. In such a nervous market environment, it only takes a small nudge to trigger big market moves.

In addition, Handelsblatt Today co-host Ben Mendelson speaks with Handelsblatt reporter Michael Scheppe about the Bertelsmann Group and the controversial internal merger of RTL with the publishing house Gruner + Jahr.

In the market report, Handelsblatt financial correspondent Peter Köhler analyzes reactions to the European Central Bank’s latest interest rate hike. The ECB raises the key interest rate by 0.5 percentage points to 3.5 percent.

More: Swiss government advises on Credit Suisse

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