Shares in Swiss bank, Credit Suisse have slumped following fears one of Europe’s biggest banks is in, well - big trouble, and is sending Aussie bank stocks in the same direction.
It all began when the banker admitted it had “material weaknesses” in its financial reporting, and now, even its largest shareholder - the Saudi National Bank has refused to help.
But, Credit Suisse is asking to borrow $81B from the Swiss central bank, in what would be the first major global bank to be assisted like this since the 2008 GFC.
The news follows the recent collapse of US tech-specialised institutions Silicon Valley Bank and Signature Bank, both of which were overly exposed to assets under pressure from rising interest rates.