Credit Suisse Group AG's shares plunged to a record low on Wednesday and credit spreads surged after the Swiss bank's top shareholder said it wouldn't raise its stake in the firm.
The stock tumbled nearly 24% on the Swiss stock exchange before recovering slightly and remains 14% down currently.
"The answer is absolutely not, for many reasons outside the simplest reason, which is regulatory and statutory," Ammar Al Khudairy, chairperson of Saudi National Bank, said in an interview with Bloomberg TV.
The bank's 6.373% U.S. dollar bonds, which are due 2026, dropped 19.75 cents to 68 cents on the dollar as of 9:18 a.m. in New York, signaling 'distress', according to Bloomberg. Its 9.016% coupon debt, due November 2033, slumped nearly 31 cents to 65 cents on the dollar, while other bonds also plunged more than 10 cents.
The spillover of the turmoil also reached bigger banks like JPMorgan Chase and Co., Wells Fargo and Co. and Citigroup Inc. as their stocks declined nearly 1–3%.
Investors continue to remain spooked after the collapse of Silicon Valley Bank and Signature Bank within a few days.
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