Key takeaways:
- Credit Suisse’s stock dropped 25% after Saudi National Bank announced it would not be increasing its investments in the company.
- The sell-off was felt across the globe, with the Dow, S&P 500, and Nasdaq Composite dropping by more than 1.4%, and Bank of America’s stock trading 3% lower.
- Saudi National Bank representatives cited regulatory concerns as the reason for their decision not to increase their investments in Credit Suisse.
On Wednesday, Credit Suisse, one of the world’s largest banking giants, saw its stock plunge to a record low after its largest shareholder, Saudi National Bank, announced it would not be increasing its investments in the company. This news caused a sell-off in the markets, with the Dow and S&P 500 both dropping by more than 1.4%, and the Nasdaq Composite dropping 1%.
The Swiss banking giant had already reported its largest annual loss since the 2008 financial crisis in February, a loss of $1.5 billion, after clients pulled out their investments. This news of Saudi National Bank’s decision to not increase their investment further shook the markets, causing Credit Suisse’s stock to drop by 25%.
The sell-off was felt across the globe, with European markets also dropping significantly. Bank of America’s stock was trading about 3% lower. Saudi National Bank representatives cited regulatory concerns as the reason for their decision not to increase their investments in Credit Suisse.
The news of Saudi National Bank’s decision to not increase their investments in Credit Suisse has caused a ripple effect in the markets, with stocks dropping significantly across the world. Investors are now watching to see how the markets will react in the coming days, as the banking giant continues to struggle.
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