The fallout from the collapse of Silicon Valley Bank and Signature Bank continues. Stocks fell on Wednesday as pressure on the banking sector rose. In particular, shares of Credit Suisse plummeted more than 20%, hitting an all-time low.
The Swiss Bank’s stock price fell after acknowledging in its latest annual report that it found “material weakness” in its financial reporting. Credit Suisse CEO Ulrich Koerner said on Bloomberg Television Tuesday that the company is “addressing and remediating” the issues in its reporting “forcefully.”
Making matters worse for Credit Suisse, the head of its largest shareholder, Saudi National Bank, said on Wednesday that it would not buy more shares in the bank, citing regulatory issues.
“We cannot because we would go above 10%. It’s a regulatory issue,” SNB chairman Ammar Al Khudairy told Reuters. SNB holds a 9.88% stake in Credit Suisse.
Bright Spots Amid the Chaos
While stocks fell during trading on Wednesday (with the S&P 500 even dropping so low it briefly turned negative for the year), there were some bright spots. Samantha Subin from CNBC reported that Some technology and software stocks outperformed as of midday Wednesday, including Microsoft, Netflix, Alphabet, and SentinelOne.
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