Credit Suisse collapsed due to his statements: He gave up the name of Critical
According to a statement issued by the Saudi National Bank, the bank’s chief executive, Saeed Mohammed Al Ghamdi, has been appointed as the bank’s president after Ammar Al Khudairy resigned for personal reasons.
The board of the kingdom’s largest bank by assets has also named Talal Ahmed Al Khereiji as interim CEO, with all the changes taking effect on March 27.
SHARES CRASH AFTER DISCLOSURE
The management changes came after Al Khudairy’s comments led to the collapse of Swiss bank Credit Suisse. Al Khudairy said he would not buy any more shares in Credit Suisse, which was hit by the banking crisis, which sent the Swiss bank’s shares tumbling to record lows.
The Saudi National Bank, which bought 9.9 percent of Credit Suisse for 5.5 billion riyals ($1.46 billion) last November, became owner of its shares after the Swiss bank was sold to its local rival. UBS for 3.2 billion dollars due to the crisis. suffered a loss of about 80 percent.
THE SAUDIS DID GREAT DAMAGE
The Saudis, the bank’s main partner, are believed to have incurred losses of more than $1 billion after the sale. With this investment, the Saudi bank’s shares fell by around a third during this period. The bank’s market capitalization shrank by $25 billion.
The Saudi bank said on March 20 that the drop in investment value had no impact on its plans for growth and progress.
WHAT HAPPENED?
The banking crisis, which started in the US the week before, spread to Europe with Credit Suisse. In addition, deposits worth more than 10 billion francs were withdrawn from the bank daily.
Subsequently, as part of a package prepared by the Swiss government, UBS Group bought Credit Suisse, which has been in business for 167 years, for 3 billion Swiss francs (3.2 billion dollars) and assumed the bank’s debt for 5.4 billion dollars. .
While the Credit Suisse acquisition and actions taken by central banks had eased investor concerns in the early hours, the massive losses suffered by investors holding Credit Suisse debt securities have reignited investor concerns.
Swiss regulators set the value of Credit Suisse’s $17 billion equity bonds traded on the markets at zero as part of the sale agreement. This decision, which will strengthen UBS’s capital, angered investors who deal with bonds, which are a safer investment vehicle compared to shares.
Investors are concerned about the damage to investors holding Credit Suisse bonds, as well as the potential for problems in one country’s banking sector to spread to other countries and the condition of fragile midsize banks in the United States.