Credit Suisse Shares Resume Fall Despite Swiss National Bank Lifeline

By Pierre Bertrand

Credit Suisse Group AG shares resumed their slide Friday despite receiving a loan from the Swiss National Bank, as troubles in the U.S. banking sector continue.

At 1232 GMT, the Swiss bank's shares traded 12% lower to CHF1.78. Shares in cross-town rival UBS Group AG fell 1.2%, while ING Groep NV was down 1.5% with most other European banks trading lower.

The fall comes as U.S. banks including JPMorgan Chase & Co. Citigroup Inc. and Bank of America Corp. swooped in Thursday and deposited $30 billion in California-based First Republic Bank to boost its liquidity amid fears it could collapse.

Confidence in the banking sector has been rattled since the run on Silicon Valley Bank and Signature Bank, while customers rushed to retrieve their deposits from First Republic amid fears it could be the next to fail. Its market capitalization fell to below $5 billion from $21 billion when the Silicon Valley Bank crisis unfolded, The Wall Street Journal reported.

Uncertainty in the sector spread to Europe and Credit Suisse which, already beleaguered, said it would borrow up to $53.8 billion from the Swiss National Bank--a lifeline boosted Credit Suisse shares on Thursday.

Write to Pierre Bertrand at [e-mail]

(END) Dow Jones Newswires

March 17, 2023 09:03 ET (13:03 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.