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Monitoring Credit Suisse’s situation, US Treasury says


The US Treasury Department said on Wednesday it is monitoring Credit Suisse’s situation after Saudi National Bank – the bank’s largest shareholder – ruled out raising its stake and the stock fell 24% in the biggest one-day sale ever.

A spokesman for the Treasury Department said the department not only assesses the exposure of the US financial sector to the banks, but is also in contact with the Federal Reserve and European regulators.

Shares of the Zurich-based lender fell 24% in its biggest one-day sell-off ever. Bonds fell to levels indicating deep financial distress, with securities maturing in 2026 falling 20 cents to 67.5 cents on the New York dollar

The deepening crisis at Credit Suisse has heightened financial stability concerns for investors worldwide who are still tense after the rapid collapse of three regional US banks.

Credit Suisse, which is in the middle of a three-year restructuring, is struggling to contain deposit outflows.

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Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.