While global markets were worried after the bankruptcy of Silicon Valley Bank in the US, there was news from Europe recently. Swiss banking giant at Credit Suisse earthquake had occurred.

Chairman of the board of Saudi National Bank, Credit Suisse’s largest shareholder Ammar Al Khudariannounced Wednesday that it will not take its shares in the bank above the near-10% level. The continuation of Hudari’s statement also led to a major crisis.

Hudari’s ‘Bank Breaking’ Statement:

Asked if Credit Suisse would make additional injections if it needed liquidity, Hudari said:Not really.he replied. Hudari explained his reason as “For legal and legal reasons and many other reasonshe claimed.

Hudari’s statement, the bank’s a large liquidity guarantee It meant he lost.

Reflection of the statement on Credit Suisse:

With Hudari’s statements, the bank’s credit margins increased rapidly. However, the bonds were written off and the cost of financing soared. The Swiss National Bank has announced that it will provide liquidity if the bank needs it.

The Central Bank also stated that Suisse has met its capital and liquidity obligations and stated that the crisis will not spill over to other banks. The next morning, Suisse turned to the Central Bank to bolster its liquidity. Borrowed 54 billion francsbought back part of its bonds for about 3 billion francs.

But while all this was going on, Suisse shares fell as much as 31%. In addition, the shares of other European giant banks such as BNP, SocGen, ING and Deutsche Bank are also available. 10% or more declines seen.

Negotiations on this subject, which have been going on for almost a week, have finally borne fruit. Credit Suisse sold:

Switzerland-based bank Credit Suisse has come to terms with the agreement, which also includes the banking market regulator. Suisse was taken over by its home country rival, UBS. But the value of the purchase was astonishing.

Credit Suisse was valued at $8 billion on Friday, with shares falling to record lows. But UBS did not $3.15 billion he bought. Shareholders of the company were also denied the opportunity to vote on the deal, offering 1 UBS share for every 22.48 shares.

The purchase agreement satisfied all financial managers and companies, especially the US, which was closely following the crisis.

Let’s move on to one of the most fundamental questions: why did Credit Suisse fail?

While the latest development that caused Credit Suisse’s collapse is Hudari’s statement, the reasons are not limited to this. After the 2008 crisis, the Bank their worst performance exhibited. He has also faced money laundering charges in recent years.

While the markets were already seen as risky with the Silicon Valley Bank incident, Hudari’s statement also added to this risk.