The call may be coming from inside the house but it is unclear if Credit Suisse is going to answer. According to reports, the bank’s shares have fallen considerably following the discovery that like SVB they also had unrealized weaknesses. For this bank, it is understood that their discovery extends as far back as two years or more.
The Zurich-based firm said the weaknesses amounted to a “failure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements.” As of Tuesday, shares fell about 5% to a record low of $2.54. Last year’s reports show that the bank posted losses of more than 7.3b francs which amounts to about $8B.
It is unclear if America’s moves to quell its banking failures will stop any further collapse.