Saudi banking boss quits after ‘absolutely not’ Credit Suisse comment
Saudi bank boss, whose ‘absolutely not’ comments on Credit Suisse’s shares sent the lender over the edge, resigns
The Saudi bank chief whose scathing comments about Credit Suisse proved to be the last straw for the battered lender has resigned.
Ammar Al Khudairy said “absolutely not” when asked nearly two weeks ago whether Saudi National Bank (SNB) would increase its stake in the Swiss investment giant amid doubts over its future.
The comments would prove hugely costly for the Saudi lender, as they helped send shares in Credit Suisse — in which it was the largest shareholder — into a tailspin from which it would never recover.
Final straw: Ammar Al Khudairy said ‘absolutely not’ when asked if Saudi National Bank would increase its stake in Credit Suisse amid doubts about its future nearly two weeks ago
Days later, it was gobbled up in a low-cost emergency takeover by Swiss rival UBS in a deal that nearly wiped out SNB’s stake – costing it around £1bn.
The bank announced yesterday that Al Khudairy has stepped down as chairman for personal reasons. CEO Saeed Mohammed Al-Ghamdi will take over the helm.
Credit Suisse came under pressure earlier this month after the demise of US Silicon Valley Bank and two other smaller US lenders.
As speculation about the future mounts, Al Khudairy said his bank would “absolutely not” put more money into Credit Suisse.
It was enough to scare investors and divest a third of the Swiss bank’s value, which came back to bite the Saudis.