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Swiss banking giant Credit Suisse on Wednesday saw its shares fall to a new record low, pressuring the broader market and the rest of the European banking sector days after two lenders collapsed in the U.S.
Credit Suisse shares
CSGN,
CS,
fell as much as 23%, breaking below the 2 franc level and extending the declines that seen its shares drop 75% over the last 52 weeks.
On Tuesday, Credit Suisse said in its annual report that it had material weaknesses in financial controls. Credit Suisse has lost money for five straight quarters, and its wealthy clients in the fourth quarter withdrew about $100 billion from the bank.
The chairman of its top shareholder, Saudi National Bank, ruled out investing any more into the bank in an Bloomberg interview.
The Euro Stoxx banking index
SX7E,
dropped 7%, with shares of major French banks Societe Generale
GLE,
and BNP Paribas
BNP,
each falling 10%.
The struggles for Europe’s banks dragged on broader market sentiment, with S&P 500 futures
ES00,
recently down about 2%.
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