Saudi National Bank chairman quits after his comments sparked Credit Suisse turmoil — and $1 billion in losses for his company
earlier in March. As the Swiss bank's troubles grew of late however, Al Khudairy said the Saudi lender wouldn't provide any more financial support to it.
"The answer is absolutely not, for many reasons outside the simplest reason, which is regulatory and statutory," Saudi National Bank Chairman Ammar Al Khudairy said in a mid-March, responding to whether the Gulf lender would dole out more money to Credit Suisse. "If we go above 10%, all new rules kick in whether it be by our regulator or the Swiss regulator or the European regulator," he said."We're not inclined to get into a new regulatory regime. I can cite five or six other reasons, but one reason is there is a glass ceiling and we're not going to entertain going beyond it," he added. , sending Credit Suisse's stock plunging 16.33% in US-listed shares, and 15.71% on Switzerland's stock exchange.
Just days later, Credit Suisse was ultimately acquired by UBS last week in a $3.25 billion deal. The deal is significantly less than the bank's market value of $9.5 billion. Credit Suisse pushed back on the initial offers on Sunday, saying they were too low and would hurt shareholders, sources Saudi National Bank took a blow from the merger. The bank was hit with a loss of over $1 billion thanks to the rescue deal, after it bought a 9.
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