Credit Suisse plunges as bank storm spreads

Swiss lender's troubles come days after two major bank failures in the US

- Margot Patrick

Credit Suisse Group AG shares fell more than 25% Wednesday and hit a fresh record low, reflecting increasing concerns that troubles that hit regional US banks have migrated across the Atlantic.

Other major European banks took hits, with shares in France’s two major international banks, Société Générale SA and BNP Paribas SA, both down more than 10%. Shares in Germany’s Deutsche Bank AG slid 8%.

The drop in Credit Suisse bonds and shares indicates that “investors judge that this bank needs to be rescued," said Joost Beaumont, head of bank research at Dutch lender ABN Amro.

“If regulators do not handle the Credit Suisse situation well, this will send shockwaves through the whole sector," he said. “To make matters worse, both sides of the Atlantic have banking issues."