>
A single deleted tweet from ABC reporter David Taylor may have sparked a massive crash in Credit Suisse’s stock price
A single deleted tweet from an ABC reporter may have caused a massive crash in the share price of a multinational bank.
ABC business reporter David Taylor tweeted on Saturday that a “major international investment bank is on the brink,” immediately sparking a whirlwind of speculation about Credit Suisse.
Credit Suisse banking stocks plunged into a tailspin over the weekend, falling to a five-year record high, as nearly 10 percent of the stock market’s value was wiped out.
Share prices fell from 3.96 Swiss Francs at Friday’s close to 3.61 on Monday morning.
As the stock crash took place, some global headlines quoted ABC’s “report” despite the public denials by Credit Suisse CEO Ulrich Koerner that the banking giant was on the brink of bankruptcy.
Taylor’s tweet was later deleted on Monday after ABC bosses intervened and Credit Suisse’s stock price later bounced back to 3.96 Swiss francs.
But at At one point, Wall Street veterans feared that the world was on the brink of another Lehman Brothers disaster that triggered the 2008 global financial crisis.
ABC corporate reporter David Taylor tweeted on Saturday that a “major international investment bank is on the brink,” immediately sparking a whirlwind of speculation
Credit Suisse’s stock prices fell from 3.96 Swiss francs at the close of trading on Friday to 3.61 on Monday morning, before bouncing back later after David Taylor’s tweet was deleted.
“ABC Australia reports, citing a ‘credible source,'” an investor tweeted this weekend. ‘Most references refer to Credit Suisse.
“As I suggested yesterday, dominoes are starting to fall, I think this is going to be ‘Lehman Brothers 2.0’.”
Lehman Brothers was the fourth largest investment banker in the US before it collapsed in 2008, leading to the global financial disaster.
Markets jumped on Credit Suisse as the latest vulnerable bank after the ABC reporter’s weekend tweet, following months of decline in the bank’s shares.
The bank’s share price has fallen from last year’s high of around 15 Swiss francs to its current level, bubbling below after a series of heavy losses, including $8.4 billion lost to the collapse of the Archegos hedge fund in 2021. the 4 Swiss francs.
Credit Suisse’s share price has fallen from last year’s high of around 15 Swiss francs to current levels after a series of heavy losses, bubbling below 4 Swiss francs.
There is also speculation that the company could be hit hard by derivatives transactions, leaving the institution severely exposed to the current rising interest rates.
However, the CEO stressed this weekend that the bank has a $100 billion buffer to protect it — and there was absolutely no danger of it failing.
“The bank is currently implementing a number of strategic initiatives, including potential divestments and asset sales,” it said in a statement to allay staff and market fears.
“The goal is to create a more focused, agile group with a significantly lower absolute cost base.”
The ABC journalist’s tweet had been liked 28,000 times and retweeted by more than 6,000 others on Monday as the rumor spread.
The ABC journalist’s tweet had been liked 28,000 times and retweeted by more than 6,000 others on Monday as the rumor spread, sparking furious speculation
But the journalist has now come under fire from some analysts for causing chaos with his vague tweet and failing to investigate further before hitting send.
ABC reporter David Taylor deletes tweets about impending collapse of a… [international bank]one tweeted.
“It’s unbelievable how this reporter sent this without even checking the financial statements…how can anyone trust this reporter in the future?”
Another added: ‘Credit Suisse rumors are probably all false.
“It was all started by an overzealous ABC Australia reporter (based on a single conversation with a financial analyst) and has since deleted the tweet and been reprimanded by his employer.”
The ABC declined to discuss the tweet further on Tuesday, referring Daily Mail Australia to an earlier statement denying ever having published an article on the matter.
The ABC declined to discuss the tweet further on Tuesday, referring Daily Mail Australia to an earlier statement denying ever having published an article on the matter.
A spokesperson added: “The ABC journalist made the comment after an exchange with a financial analyst.
His managers have discussed the matter with him and reminded him of the ABC social media guidelines.
“Reports that the ABC has published an article on this subject are incorrect.”
Daily Mail Australia has contacted Taylor for comment.