New Saudi investors say Credit Suisse shares are a 'steal' after buying 9.9%.
By The Exchange Team
The chairman of one of Credit Suisse's newest and biggest shareholders called for a quick overhaul and a return to "very stable, conservative Swiss banking."
Saudi National Bank, the kingdom's largest lender and majority-owned by the Saudi government, invested up to $1.5 billion in Credit Suisse on Wednesday.
"We got it at the bargain basement price." On Sunday, Ammar Alkhudairy said, "I think the bank has been battered."
Trading at less than a fourth of tangible book value is a steal. The 160-year-old brand has a lot of value.
According to reports, the bank will become Credit Suisse's second-largest shareholder, trailing only Harris Associates.
The Swiss lender revealed a third-quarter net loss of $4.09B, substantially worse than analyst projections, and promised a massive strategy revamp.
After several scandals, management changes, and weak earnings releases, shares have fallen by around 55% this year.