Credit Suisse shares tumble to new record low as European banking sector reels

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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


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

dropped 7%, with shares of major French banks Societe Generale

and BNP Paribas

each falling 10%.

The struggles for Europe’s banks dragged on broader market sentiment, with S&P 500 futures

recently down about 2%.

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