Saudi Arabia one of biggest losers in Credit Suisse fail: WSJ
This serves as a reminder of how Gulf nations were also hit hard in the financial crisis of 2008-2009, which saw the value of foreign assets by the Gulf Cooperation Council (GCC) states in 2008 plunge by $100 billion.
Per Saudi Crown Prince Mohammed bin Salman’s order, the government-backed Saudi National Bank made a $1.5 billion investment in Credit Suisse Group AG last year – that now is almost down to zero following Credit Suisse’s emergency merger with UBS Group AG this week.
Billions of dollars in investments have also been washed out from Qatar’s sovereign fund and the Saudi-based Olayan family. This serves as a reminder of how Gulf nations were also hit hard in the financial crisis of 2008-2009, during which the foreign assets held in portfolios of Gulf Cooperation Council (GCC) states in 2008 plunged by $100 billion, down to a total of $1.2 trillion. These numbers do not include the personal holdings of the ruling families.
UBS bank shares plunged by almost nine percent as markets opened on Monday, a mere day after it was announced that the bank will take over its rival Credit Suisse for $3.25 billion.
Moreover, shares of Credit Suisse opened almost 64 percent lower, well below the UBS takeover price.
After weekend intense talks aimed at preventing a wider international banking crisis, UBS announced it was ready to take over Swiss rival Credit Suisse for $3.25 billion. Meanwhile, Asian shares fell Monday on lingering concerns about the industry.
