DOW Falls 500 Points Amid Global Banking Fears

Stocks in the banking industry have fallen since the collapse of SVD and Signature Bank. Shares of the Swiss bank,  Credit Suisse were down by more than 20% after its biggest backer, Saudi National Bank, chose not to increase its funding. Credit Suisse announced on Tuesday that it had found “material weakness” in its financial reporting process from prior years. Other European banks also slid, including a 9% drop for Deutsche Bank.

“We cannot because we would go above 10%. It’s a regulatory issue,” Saudi National Bank Chairman Ammar Al Khudairy told Reuters on Wednesday. However, he added that SNB is happy with Credit Suisse’s transformation plan and suggested the bank was unlikely to need extra money.

CNBC:

The move appeared to hit large U.S. banks as well. Shares of Wells Fargo fell more than 4% and Citi dropped 5%, while Bank of America dipped 3%. JPMorgan and Goldman shed about 4% each.

***We’ll continue to monitor the DOW to see if it recovers or dips further.

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