Long-brewing troubles at Credit Suisse exploded into a full-blown crisis overnight as its stock and bonds cratered and some of the world’s biggest banks raced to shield their finances from the potential fallout. It added to concerns driven by the second- and third-largest bank failures in US history that occurred over the past week.

“Events such as those in the US can quickly undermine confidence and be very dangerous. Swift regulatory action and oversight like we have seen is critical in managing potential contagion risk and confidence. It is also an important alarm to the risks and vulnerabilities when financial conditions and credit spreads change as quickly as they have,” said Tadgell.

“The risk something more serious breaks in raising rates versus the risk of not getting on top of inflation is an increasing dilemma for central banks.”

Market heavyweight BHP weighed the bourse down,sliding 4.8 per cent to $43.39 amid news the world’s largest minercould face a $65 million damages bill if it loses a London class action lawsuit over its role in the deadly collapse of a Brazilian tailings dam.

Financial services firm Latitude entered a trading halt after revealing a cyberattack had led it to believe328,000 customers’ identification documents had been stolen from a service provider used by the company.

Investors in Qantas didn’t appear pleased with its move toextend the expiry date on $800 million in unused flight credits for a third time. Customers had until the end of the year to use up the travel credits,but this has now been extended to the end of 2024 so long as the trip is booked by December 31,2023. Qantas’ share price finished down 1.9 per cent.

On Wall Street overnight,the S&P 500 closed 0.7 per cent lower after earlier falling as much as 2 per cent as markets in Europe lost ground as shares of Switzerland’sCredit Suisse tumbled to a record low. The Dow Jones lost 0.9 per cent and the Nasdaq gained 0.1 per cent.

Credit Suisse has been fighting troubles for years,including losses it took fromthe 2021 collapse of investment firm Archegos Capital. Its shares in Switzerland tanked by more than 25 per cent after reports that its top shareholder won’t pump more money into its investment.

Quote of the day:
“The answer is absolutely not,for many reasons outside the simplest reason,which is regulatory and statutory,” said chairman of the Saudi National Bank Ammar Al Khudairy – the largest Credit Suisse investor – who triggered a crisis after being asked if it would tip more money into the bank.

Tweet of the day:

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