Dow falls 500 points as Credit Suisse concerns deepen fears of banking crisis

[brooklynite]

This discussion thread was locked as off-topic by JudyM (a host of the Latest Breaking News forum).

Source: The Hill

The stock market opened with steep losses Wednesday as concerns about the health of Credit Suisse triggered fears of a broader banking crisis.

The Dow Jones Industrial Average opened with a loss 1.5 percent Wednesday, a decline of almost 500 points after the opening bell. The S&P 500 index opened with a loss of 1.4 percent and the Nasdaq composite opened with a loss of 1.1 percent.

Stock futures began selling off before the stock market opened Wednesday as U.S. traders watched shares of Credit Suisse plunge more than 30 percent in overseas trading, according to CNBC. Investors began to lose confidence in the bank after the chairman of the Saudi National Bank, Credit Suisse’s largest investor, told Reuters that the Saudi central bank would not boost its investment in the troubled Swiss firm.

Credit Suisse, Europe’s second largest bank, has faltered under years of scandals and financial woes. Credit Suisse also operates in the U.S. and is subject to the strictest Federal Reserve supervision and stress tests. Silicon Valley Bank, which collapsed Friday and set off a global banking scare, was exempted from those rules under a 2018 bipartisan law signed by former President Trump.

Read more: https://thehill.com/homenews/3901030-dow-falls-500-points-as-credit-suisse-concerns-deepen-fears-of-banking-crisis/

[cstanleytech]

1. Well if people do not stupidly panic things will be fine.

It's when they do stupid things like rush to the banks to withdraw all their funds that can trigger a real crisis because banks only have a finite amount of cash on hand with the rest spread out in long term investments which take time to transfer back into cash.

[efhmc]

2. Bet the Dow is back up by Friday.

[former9thward]

5. Back up to what?

The Dow is now close to what it was in Jan 2021.

[brooklynite]

7. Credit Suisse isn't that kind of bank...

It handles investments and corporate financial services.

[pnwmom]

8. We can never count on people not to do stupid things. nt

[IronLionZion]

10. Credit Suisse requested more Saudi investment capital and were rejected.

Customers have been withdrawing their money over the past year after several risky mistakes and bad investments indicating bad management. Investors and customers have lost confidence in them.

[hibbing]

3. I'm nervous about my impending retirement

No pension, I have a balanced portfolio, but I've "lost" more in the last year than I make in 5 years. My financial advisor still has me on track to retire, but we'll see!

Peace

[onenote]

9. How much did your portfolio grow in the year before last year. In the past six years?

[hibbing]

11. yeah

It always goes down much more brutally then when it goes up. I know it goes up and it goes down, I guess I've been spending too much time looking at "news" where it's all doom and gloom regardless of reports being released.

[ImNotGod]

4. "has faltered under years of scandals and financial woes." sounds like a great place to invest in

[LudwigPastorius]

6. 1.5% is nothing.

The Dow's average daily loss, or gain, is 1%.

[JudyM]

12. Locking after forum hosts' review

Analysis and not important breaking news.