After the bankruptcy of the Silicon Valley Bank in the United States, banks are suffering the consequences of investor concern.
By VD with AFP
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IEuropean banks were again heckled on the stock market on Wednesday, dragging down all the European indices, with new fears about the possible repercussions of the bankruptcies of establishments in the United States.
The action of the bank Credit Suisse suffered the worst fall in its history, closing down 24.24% to 1.697 Swiss francs, after a movement of panic on the title following comments from its largest shareholder. The title lost up to 30% of its value during the session to reach a new historical low point at 1.55 Swiss francs, its fall causing a storm on the stock markets.
BNP Paribas fell, for its part, by 10.92%, Société Générale by 12.97%, Banco Sabadell by 11.19%, ING by 9.50%, Commerzbank by 9.90%, Deutsche Bank by 8.65 %, Unicredit of 7.14%. Since the beginning of the week, almost all of these banks have lost more than 10% of their stock market value, and some more than 15%.
The main European indices fell: Paris by 2.97%, London by 2.76%, Frankfurt by 2.43% and Milan by 4.01%. The European banking sector index (Stoxx 600 Banks) plunged more than 7%. US markets fell in early trading, the Dow Jones returned 1.40%, the Nasdaq index fell 1.01% and the broader S&P 500 index fell 1.39%.
” No risk “
The boss of Credit Suisse’s main shareholder, the Saudi National Bank, said in an interview with Bloomberg TV that he “absolutely did not intend” to help Credit Suisse in the event of a new request for liquidity “for several reasons beyond those which are regulatory and statutory”.
French Prime Minister Elisabeth Borne reacted by asking the Swiss authorities to fix the bank’s problems. “This subject is the responsibility of the Swiss authorities. It must be settled by them”, affirmed, before the Senate, the French Prime Minister, specifying that the French Minister of Finance Bruno Le Maire “would have contact with his Swiss counterpart in the coming hours”. “I confirm to you, as the Minister of Finance reminded him yesterday (Tuesday), that French banks are not exposed to any risk following the bankruptcy of the SVB”, she said.READ ALSOIn Silicon Valley, the weekend of funk
After having been in great difficulty on Friday and Monday, most European banking establishments regained some color on Tuesday and their prices rebounded, while remaining much lower than Thursday’s at the close. Investors are worried about the risks of contagion after the bankruptcy of several American establishments, including the Sillicon Valley Bank, despite the measures taken by the American authorities and the assurances given by European leaders.