Black Wednesday? Credit Suisse Stock Nosedives 78% from 1-year High, Sparks $60 bn Rout in European Banks
Trading was halted in some of the European banks including Credit Suisse on Wednesday March 15 to tame the steep plunging, however, that did not stop the company's stock to hit a record low.
Trading was halted in some of the European banks including Credit Suisse on Wednesday March 15 to tame the steep plunging, however, that did not stop the company's stock to hit a record low.
U.S.-listed shares of Swiss bank Credit Suisse hit a record low, after its largest investor said it could not provide more financing to the bank, starting a rout in European lenders and pressuring U.S. banks as well.
Credit Suisse troubles piled more pressure on the banking sector after U.S. authorities relieved investors with emergency measures to prevent contagion after the collapse of SVB Financial (SIVB) and Signature Bank (SBNY).
Some investors believe aggressive U.S. interest rate hikes by the Federal Reserve caused cracks in the financial system.
Big U.S. banks including JPMorgan Chase & Co (JPM.N), Citigroup (C.N) and Bank of America Corp (BAC.N) also dropped, pushing the S&P 500 banking index (SPXBK) down 3.62%. The KBW regional banking index (KRX) declined 1.57%.
Goldman Call on ESG Debt Paves Way for a Hedge Fund’s Big Short
Credit strategists at Goldman Sachs pointed out that the long-standing premium on debt targeting environmental, social and governance goals had been consigned to history.
