There is a “bank” concern in global markets.
Shares of Swiss Credit Suisse, one of the world’s largest banks, have been falling since the beginning of the year. The bank’s shares fell 55 percent on the last trading day of last week compared to the beginning of the year.
On the first trading day of the new week, the shares lost nearly 10 percent. The bank’s risk premium rose to the highest level in 14 years with 250 points.
The bank’s executives tried over the weekend to reassure major clients, contract parties and investors about their liquidity and capital positions, the Financial Times reported.
In a report in Reuters, it is stated that the CEO of the bank, Ulrich Koerner, briefed his employees about the company and stated that their capital and liquidity were solid.
THE SITUATION IS SIMILAR TO DEUTSCHE BANK
Credit Suisse is not the only concern in Europe.
Germany’s Deutsche Bank is allegedly grappling with a similar problem.
Financial Advisor Tuncay Turşucu said, “If there is a risk, it will be very, very bad if it happens like we experienced in 2008. I am guessing that we will proceed with a much more cautious and careful way in this regard and that this will not be allowed,” he said.
As the risk of banking crisis increases in Europe, the 2008 crisis comes to mind.
The bankruptcy of Lehman Brothers, which is the symbol of the financial crisis, caused a long period of turmoil in the global economy and markets. The American economy contracted by 6.3 percent in the fourth quarter of 2008 and 6.4 percent in the first quarter of 2009.