Credit Suisse hits again, currently down 10% in London.
The bank’s stock began falling earlier in the week after the Saudi National Bank revealed it would not provide the bank with additional liquidity due to regulatory requirements. The bank is undergoing a massive strategic review aimed at restoring stability and profitability after a series of losses and scandals, but capital markets and stakeholders appear unconvinced.
In an interview with Bloomberg this week, famed economist Nouriel Roubini warned: “Credit Suisse, by some standards, may be too big to fail, but also too big to bail out.” “It’s unclear whether, unlike the United States, the federal system has enough resources to mount a bailout, and what they certainly need is more capital. The question is whether they will get that capital or not, otherwise bad things can happen,” Roubini told the agency.
At the moment, the FTSE MIB in Milan is down by 0.27 to 25,874.78 points.