Credit Suisse is the latest banking group in trouble after the Silicon Valley Bank (SVB) and Signature Bank were wound up by regulators this week.
The Swiss lending and investment banking group came into focus as its largest investor, Saudi National Bank, said it could not provide the bank with more financial assistance due to regulatory constraints. The newssent the bank shares tumbling more and spreading fear in European markets.
With the crash in Credit Suisse shares, there has been a rally in safer government bonds putting the Swiss government under pressure to act to save the bank.
The European Central Bank has been sending feelers to banks under its regulatory umbrella to guage their exposure to Credit Suisse.
Despite the assurances that the problems at Credit Suisse was specific and not systemic, the market has been on edge.
Credit Suisse has made an appeal to the Swiss National Bank and Swiss financicial regulator for a public show of support.
It is believed that the latest banking issues especially with SVB and Signature Bank started with the ultra low interest rate regimes which tempted the banks to put depositors money into more risky yielding assets.