Credit Suisse revives Lehman fear
By Our Special Correspondent
New Delhi, October 1: The global financial market appears to have come under a severe stress, with experts weighing the memo of Ulrich Koerner, the CEO of Credit Suisse, to the staff that they should not panic while the share price of the company has sunk to a record low.
From $14.90 in February, the share price of Credit Suisse has come to $3.90 a piece, fuelling the financial market participants speculating that global equity space may have to face up with another 2008 Lehman Brothers moment when the investment bank had gone bust, triggering a black swan moment for the bourses.
“The collapse in Credit Suisse’s share price is of great concern. From $14.90 in Feb 2021, to $3.90 currently, markets are saying it’s insolvent and probably bust,” tweeted Alasdair Mcleod, head of research for Goldmoney.
The CEO of the bank in the memo asked the staff to remain disciplined. The memo is stated to have been issued on Friday.
The rumour mill ran wild on social media of an impending global financial market meltdown, while the equity markets globally are in the midst of downturn.
Germany, the largest economy, is also slipping into a stress phase amid the deepening energy crisis in the wake of the seven months long Russian war in Ukraine. European countries are largely dependent on the Russian gas supply, which is dope through major pipelines.
The American traders have also begun speculating possible collapse of the bond market, which may further aggravate the capital market situations. Russia is showing no signs to call off its invasion of Ukraine, while Moscow has usurped almost one-fourth of the Ukrainian provinces through a referendum, which could possibly stretch the energy crisis by several months to give the global inflation further steam in the coming weeks.
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