European banks were rocked by another turbulent session on Wednesday, falling as much as 10% amid concerns over the global fallout from the collapse of Silicon Valley Bank and Credit Suisse’s dramatic fall last week, sending many bank stocks including Credit Suisse down. , being temporarily suspended from business.
By midday, European banks were down 6.66% in London.
The Paris Stock Exchange also took a big hit as French banks Societe Generale fell 10.6% and BNP Paribas fell 10.3%. This is the biggest decline for Société Générale since 24 February 2022 and for BNP Paribas since 16 March 2020.
Credit Suisse, Switzerland’s second largest bank, which has been plagued by a series of scandals, announced to its main shareholder on Wednesday that it could not provide additional financial support. The group is struggling to recover from several highly publicized financial scandals.
Bank stocks have already been rocked by the collapse of Silicon Valley Bank. This historic failure sparked widespread panic despite the unexpected intervention of US authorities to control the spillover and reassure markets.