Regional and Big Banks Fall as Crisis Fears Rise, with Credit Suisse Plunging 18%

Regional and big banks fall as crisis fears rise, with Credit Suisse plunging 18% as top holder rules out investing more.

Credit Suisse Group AG’s top shareholder, whose stake has lost more than one-third of its value in three months, ruled out investing any more in the troubled Swiss bank as a bigger holding would bring additional regulatory hurdles.

“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 an interview with Bloomberg TV on Wednesday. That was in response to a question on whether the bank was open to further injections if there was another call for additional liquidity.

Regional banks pared their early gains to trade lower in premarket trade Wednesday, after Bloomberg reported that Bank of America had received more than $15 billion in customer deposits recently following the failure of three banks in the space of a week.

$First Republic Bank(FRC-N)$ $(FRC)$ was down 2.5%, shedding early gains. Zions Bancorp. $(ZION)$ was down 5% and Western Alliance Bancorp. $(WAL)$ was down 2.3%.

The big banks also moved lower with JP Morgan Chase $(JPM)$ down 2.3%, Citigroup (C) down 4.1% and Bank of America Corp. $(BAC.SI)$ down 3%.