Swiss National Bank will provide troubled Credit Suisse financial support 'if necessary' but signals firm isn't in immediate danger
New fears for the stability of the global financial system rattled markets on Wednesday, after Credit Suisse acknowledged it found “material weakness” in its financial reporting, adding uncertainty to the already jittery banking sector in the wake of Silicon Valley Bank’s collapse.
“Credit Suisse is in principle a much bigger concern for the global economy than the regional U.S. banks which were in the firing line last week,” Andrew Kenningham, chief Europe economist with Capital Economics, said in a research note Wednesday. “Credit Suisse is not just a Swiss problem but a global one.”
In its annual report released Tuesday, the Swiss bank said it found “material weaknesses” relating to the bank’s “failure" to appropriately identify the risk of misstatements in its financial reporting. It added it had failed to maintain effective monitoring over the bank’s “internal control objectives” and “risk assessment and monitoring objectives.
The Swiss bank had delayed releasing its annual report after the U.S. Securities and Exchange Commission asked for more information last week about past cash flow statements.The bank previously has disclosed that it suffered significant customer withdrawals in October. It repeated that information in its annual report, saying that “significant deposit and net asset outflows in the fourth quarter” undermined the bank’s full-year financial results.
Financial stocks have been shaky ever since, and regulators shuttered Signature Bank on Sunday. To stave off a broader panic, U.S. authoritiesthey would be made whole. Regional U.S. bank stocks fell sharply on Monday and then rebounded on Tuesday. But the Credit Suisse news on Wednesday, a sign that banking sector issues aren’t confined to U.S. banks, appears to have rattled investors in banks again.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Credit Suisse, Citi and more bank stocks tumble amid Silicon Valley Bank turmoilBank stocks in the U.S. and Europe are tumbling as the global financial system continues to reckon with the Silicon Valley Bank collapse—the largest bank failure since 2008.
Read more »
Credit Suisse woes knock euro, sterling, Swiss FrancEuropean currencies fell sharply on Wednesday after Credit Suisse's tumble to a new low renewed worries about the European banking sector following Silicon Valley Bank's collapse.
Read more »
Stocks trim losses after report Credit Suisse, Swiss authorities hold talksU.S. stocks trimmed sharp losses Wednesday afternoon following a report that Swiss authorities and Credit Suisse held talks aimed at stabilizing the troubled...
Read more »
Credit Suisse's biggest backer says can't put up more cash; share down by a fifthThe head of Credit Suisse Group's largest shareholder, Saudi National Bank (SNB) , said on Wednesday it would not buy more shares in the Swiss bank on regulatory grounds.
Read more »
Misha Esipov Creates Nova Credit To Provide Credit Data For ImmigrantsWith the founding of the San Francisco-based Nova Credit in 2016, Misha Esipov's challenge was to solve what the three big credit bureau’s had not, namely the ability to transfer credit information from other countries.
Read more »
SVB, Signature Bank failure explained - USA TODAYHow worried should Americans be about recent bank collapses? usatodaymoney reporter Medora Lee puts things in perspective with 5 Things podcast host atltwil:
Read more »