Ammar Al Khudairy, the chairman of Credit Suisse’s largest shareholder whose comments recently helped spark a slump in the Swiss lender’s shares ultimately leading to its takeover by UBS, has resigned.
He will be replaced by Saudi National Bank chief executive Saeed Mohammed Al Ghamdi, according to a statement on Monday.
When asked earlier this month if Saudi National Bank would be open to further investments in Credit Suisse if there was another call for additional liquidity, Mr al Khudairy said, “absolutely not”.
The Swiss bank’s stock plunged to the lowest level on record and its credit spreads surged following his comments. That helped drag all European banks lower as investors shied away from risk following the collapse of three lenders in the US.
UBS agreed to buy Credit Suisse in a historic, government-brokered deal aimed at containing a crisis of confidence that had started to spread across global financial markets. UBS will pay 3 billion francs (€3.2 billion) for its rival in an all-share deal that includes extensive government guarantees and liquidity provisions.
Saudi National Bank, which is 37 per cent owned by the kingdom’s sovereign wealth fund, acquired a roughly 9.9 per cent stake in Credit Suisse for 1.4 billion Swiss francs last year as the anchor investor in its capital raise. – Bloomberg