US banks recorded a significant drop in stocks at the opening of meetings on Wednesday. Citigrup had -5.6%, Bank of America -3.3%, JPMorgan Chase -4.1%, First Republic Bank -14%, Western Allicen Bancorp -6.7%, PacWest Bancorp -22%.

On the index side, the S&P 500 fell 1.46%, the Dow Jones Industrial Average fell 1.6% and the Nasdaq fell 1%.

The decline came after Credit Suisse shares fell on European markets.

Shares in Credit Suisse were down 25% as of 4 p.m.

It will be recalled that the bank disclosed “significant deficiencies” in its financial reporting processes for 2022 and 2021. The caveat was in the annual report, which was originally scheduled for last Tuesday and was later postponed after an appeal by the US watchdog (SEC). ).

The fall in the share came after the president of the National Bank of Saudi Arabia, which bought a 10% stake in Credit Suisse last year, ruled out further bailouts for the bank, and SVB’s collapse was the icing on the cake.

Asked by Bloomberg TV whether the SNB would be open to providing capital to Credit Suisse if there was a demand for additional liquidity, SNB president Ammar Alhudayri said: “The answer is absolutely no, for many reasons, apart from the simple reason that is regulatory and legislative.”

He said owning more than 10 percent of Credit Suisse would lead to additional regulatory requirements.

In a separate interview at a financial conference in Saudi Arabia, Credit Suisse Chairman Axel Lehmann said on Wednesday that a bailout from the Swiss government was “not a topic of discussion” at the moment.

“We have strong capital ratios, a strong balance sheet,” he said, adding that the bank was in the process of a radical restructuring aimed at halting years of scandals and losses. “I already took my medicine,” he said.

Photo source: Dreamstime.com