Credit Suisse (NYSE:CS) stock is taking a beating on Wednesday after Saudi National Bank said it would no longer financially help the company.
According to Saudi National Bank, it will be unable to help Credit Suisse due to regulatory issues. The company notes that doing so would put its holdings in the bank above 10%. Currently, it has a 9.9% stake in CS.
While this might worry some investors, Saudi National Bank doesn’t see a cause for concern. The firm is satisfied with the company’s transformation plan and doesn’t believe it will need any additional funding.
Axel Lehmann, chairman of Credit Suisse, echoed the sentiment when speaking to CNBC. He told the publication that the company has “strong capital ratios” and a “very strong balance sheet.”
CS Stock Movement On Wednesday
The recent failure of SVB Financial (NASDAQ:SIVB) is part of the reason that CS stock is falling today. It triggered a bank stock crash this week, but CS has been dealing with its own problems as well. That includes scandals that have worried investors these last few months.
Combining these two factors and we’re seeing heavy trading of CS stock as investors sell shares. This has some 77 million units on the move as of Wednesday morning. That’s a massive surge in trading volume compared to the company’s daily average of 22.2 million shares.
CS stock is down 23.7% as of Wednesday morning.
There’s even more stock market news traders will want to know about below!
We’ve got all of the hottest stock stories investors need to know about on Wednesday! Among that is what has stock down today, as well as why Boxed (NYSE:BOXD) and Inpixon (NASDAQ:INPX) shares are falling. You can read up on these matters at the links below!
More Wednesday Stock Market News
- Why Are Stocks Down Today?
- Why Is Boxed (BOXD) Stock Down 41% Today?
- Why Is Inpixon (INPX) Stock Down 34% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
