Shares of Credit Suisse fell more than 14% today, setting a new record low. The markets worried about European banks following the collapse of US lender SVB.
On the Swiss stock market, shares of the country’s second-largest bank dropped sharply, 14.30 percent to 2.139 Swiss francs.
Other European institutions also suffered losses, with Commerzbank in Germany losing 12 percent, Santander in Spain losing 7.4 percent, and ING in the Netherlands losing 8.3 percent.
Since being shaken by the bankruptcy of the British financial institution Greensill in March 2021 — the first of several scandals that have weakened the Zurich-based bank . Credit Suisse has lost 81 percent of its shares worth.
Those shocks forced Credit Suisse to launch a major restructuring effort. But the bank has continued to see its value drop shares on the stock market.
The bank reported in early February a net loss of 7.3 billion Swiss francs. Which was Under the weight of those restructuring costs. That came against a backdrop of massive withdrawals of funds by its clients. Including in the wealth management sector — one of the activities on which the bank intends to refocus.
Credit Suisse flags ‘material weakness’
Credit Suisse identified a “material weakness” in the internal controls over its financial reporting process. The embattled lender unveiled its delayed annual report. In a statement on Tuesday, the bank said it is working to develop a plan to address these issues. And The Board of Directors of Credit Suisse is closely monitoring the implementation and effectiveness of the remediation.