Credit Suisse is down 20% and is putting pressure on European banks. BCP drops over 8%

German and French banks fell 10%. Troubled Credit Suisse plunged 20 percent after the Saudis scrapped more subsidies. BCP drops more than 8%. The return of the sector to the epicenter of the hurricane after the bankruptcy of the United States

European banks are still under heavy selling pressure this Wednesday, with concerns about Credit Suisse spreading across the sector. The troubled Swiss bank fell 20% after the Saudis ruled out more support. German and French banks are collapsing by 10% as investor distrust grows.

“The Swiss bank’s largest shareholder, the National Bank of Saudi Arabia, will have ignored any further injection of capital into the institution, raising fears that the bank could run into difficulties, after it reported serious deficiencies in internal control of its accounts,” the Trading Room analysts explained. BCP – Shares of the Portuguese bank are also under pressure, falling 8.2% to €0.1948.

After news that the Saudis were unwilling to increase their position by 10% due to regulatory concerns, Credit Suisse shares fell 20.56% to CHF1,779, hitting a new all-time low. The Swiss regulator has suspended trading in bonds several times this morning.

The Euro Stoxx Banks Index, which tracks the European sector, fell more than 8%, with all banks in the red. The French and Germans were the most affected: Societe Generale Hot 12.16%, and BNP Paribas fell 10.87%. Commerzbank fell 10.07%.

According to Reuters, since the eighth, before the bankruptcy of the US bank Silicon Valley Bank, European banks have lost 120 billion euros in the stock market.