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    Global Financial System on Edge of Meltdown After Credit Suisse Plunge


    The global financial system is on the edge of a meltdown after the collapse of two lenders in the United States, causing shares of Swiss banking giant Credit Suisse to plunge to a record low. On Wednesday, Credit Suisse shares crashed 30 percent after Saudi National Bank, Credit Suisse’s biggest shareholder, ruled out injecting the bank with more financial assistance. The news sent shockwaves through the European market, with other major banks in the continent seeing their share prices plummet.[0]

    The fear is that rising interest rates could be the trigger for a banking crisis.[0] Credit Suisse is attempting to restructure in order to return to profitability, and has already spun out its investment banking unit while focusing on its key wealth management business.[1] But the bank’s second strategy pivot has yet to win over investors or halt client outflows, and the effort could be further complicated by market unease.[1]

    The news has sent the Dow Jones Industrial Average plummeting, with the index dropping more than 500 points Wednesday morning.[2] In an unexpected move, the Producer Price Index, a key U.S. inflation gauge, decreased in February.[3]

    The chairman of Saudi National Bank, Ammar Al Khudairy, ruled out providing Credit Suisse with further financial assistance in an interview with Bloomberg TV on Wednesday.[3] Al Khudairy said the answer was a “definite no” for reasons outside of the simplest regulatory and statutory ones.[4]

    0. “Credit Suisse Teeters as Shares Slide 30 Percent” The Daily Beast, 15 Mar. 2023,

    1. “Credit Suisse Reels After Top Shareholder Rules Out Raising Stake” Yahoo Finance, 15 Mar. 2023,

    2. “Stocks drop as fears grow about the global banking system” NPR, 15 Mar. 2023,

    3. “Dow Jones Dives 500 Points On Renewed Banking Fears As Credit Suisse Crashes 28%” Investor's Business Daily, 15 Mar. 2023,

    4. “European bank stocks, Credit Suisse shares fall sharply” The Washington Post, 15 Mar. 2023,

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