Saudi National Bank chairman resigns after Credit Suisse comment

 

He will be replaced by Saudi National Bank Chief Executive Officer Saeed Mohammed Al Ghamdi, according to a statement on Monday, Bloomberg reports. 

Speaking in an interview with Bloomberg TV earlier this month, Al Khudairy said “absolutely not” when asked if Saudi National Bank would be open to further investments in Credit Suisse if there was another call for additional liquidity. 

 

The Swiss bank’s stock plunged to the lowest level on record and its credit spreads surged following his comments. That helped drag all European banks lower as investors shied away from risk following the collapse of three lenders in the US. 

UBS Group AG agreed to buy Credit Suisse in a historic, government-brokered deal aimed at containing a crisis of confidence that had started to spread across global financial markets. UBS will pay 3 billion francs ($3.3 billion) for its rival in an all-share deal that includes extensive government guarantees and liquidity provisions.

Saudi National Bank, which is 37% owned by the kingdom’s sovereign wealth fund, acquired a roughly 9.9% stake in Credit Suisse for 1.4 billion francs last year as the anchor investor in its capital raise.