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Credit Suisse sees stock value tumble

Europe Tax Probe
Posted at 6:10 AM, Mar 16, 2023
and last updated 2023-03-16 08:17:00-04

United States stocks drop after investors' fears over future problems in the banking industry.

One of Switzerland's top lenders, Credit Suisse, saw its stock value tumble as much as 30% after its largest shareholder announced it wouldn't increase its funding.

Some of the anxiety may be fading as Credit Suisse said it will borrow about $54 billion from the Swiss National Bank.

Officials there, in a joint statement with the Swiss financial market supervisory authority and credit Suisse, said the problems of "certain banks in the USA do not pose a direct risk of contagion for the Swiss financial markets."

Since Silicon Valley Bank collapsed last week, many depositors have been yanking money out of small banks and putting it in accounts at bigger banks, like Wells Fargo and Bank of America.

"Not being able to get your money out of the bank is a fear, but it is not a realistic possibility or a realistic threat that Americans are facing,” Larry Summers Former Treasury Secretary Larry Sanders said.

The FDIC only insures up to $250,000 per bank per depositor, regardless of a bank's size.

Large banks are generally seen as safer, though, because they have more cash available. And the government is more likely to bail them out if they fail.