Credit Suisse shares reached a new all-time low for the second day in a row on Wednesday, dropping over 24% at one point during the trading session. The shares were temporarily halted several times during the morning, and although they slightly recovered by 11:30 a.m. London time, they still remained over 20% down on the day.
Credit Suisse’s major investor, Saudi National Bank, disclosed that it could not offer any further financial assistance to the Swiss bank due to regulatory issues, according to a Reuters report. The Saudi National Bank holds a 9.9% stake in Credit Suisse following the bank’s $4.2 capital raise in 2020. Credit Suisse Chairman Axel Lehmann refused to comment on the likelihood of the bank requiring any form of government assistance in the future during a panel session in Riyadh with CNBC’s Hadley Gamble on Wednesday morning.
Shares of Credit Suisse dropped by over 24% during Wednesday’s trading, hitting another all-time low for a second consecutive day. The bank’s plummeting shares were halted several times throughout the morning, and while they recovered slightly by around 11:30 a.m. London time, they were still down over 20% on the day.
The drop followed news that Credit Suisse’s largest investor, Saudi National Bank, could not provide the Swiss bank with further financial assistance due to regulatory issues. Credit Suisse disclosed the observation of “material weaknesses” in its financial reporting processes for 2022 and 2021 in its annual report, which was initially scheduled for last Thursday.
The report was delayed by a late call from the U.S. Securities and Exchange Commission (SEC), which 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.” The bank saw customer withdrawals of more than 110 billion Swiss francs in the fourth quarter of 2022, as it faced a series of scandals, legacy risk, and compliance failures.