Credit Suisse‘s largest shareholder Saudi Nationwide Financial institution mentioned the market turmoil in shares of the Swiss lender was “unwarranted.”
“In the event you take a look at how your complete banking sector has dropped, sadly, lots of people have been simply searching for excuses,” Saudi Nationwide Financial institution chairman Ammar Al Khudairy advised CNBC’s Hadley Gamble on Thursday.
“It is panic, slightly little bit of panic. I imagine utterly unwarranted, whether or not it’s for Credit score Suisse or for your complete market,” he mentioned on CNBC’s “Capital Connection.”
His feedback come hours after Credit score Suisse introduced that it’s taking “decisive action” to borrow as much as 50 billion Swiss francs ($53.68 billion). The lender’s shares plunged Wednesday after a report that the Saudi financial institution mentioned it couldn’t present Credit score Suisse with any additional monetary help.
He added that the latest fallout of the collapse of Silicon Valley Financial institution was completely different from the 2008 monetary disaster, saying that steps taken by U.S. regulators to guard depositors have contained additional fears of contagion.
“We did have a failure final week, however that is nowhere close to, nothing to do with what we noticed in 2008. This is only one remoted incident, the regulators have reduce off any potentialities of a spillover,” he mentioned.
Message has ‘not modified’
The chairman of Saudi Nationwide Financial institution advised CNBC that Credit score Suisse has not requested for monetary help.
“There was no discussions with Credit score Suisse about offering help,” he mentioned.
“I do not know the place the phrase ‘help’ got here from, there was no discussions in anyway since October,” he mentioned.
He reiterated that the financial institution is not going to take its stake past the current 9.9%.
“The message has not modified, it is the identical since October,” he mentioned. “Even when we desired to, there are too many issues from a regulatory and compliance standpoint,” he mentioned.