Switzerland must have been listening to Jamie Dimon’s Senate appearance yesterday.
The day after U.S. senators and Dimon all but sanctified the need for banks to hold capital, the Swiss central bank on Thursday said UBS and Credit Suisse need to bolster their capital positions.
It was a blow to confidence in Credit Suisse, sending its stock plummeting over 9% in recent New York action to $18.04. That’s the lowest the ADRs have traded in over nine years, according to FactSet Research.
UBS, meanwhile, was down just 0.4% to $11.54.
From Dow Jones’ Neil MacLucas and John Revill:
Switzerland was already imposing heavier standards on capital levels on their banks than other countries, but as Dimon pointed out to an inquisitive senator, Credit Suisse and UBS are significantly bigger than Switzerland’s GDP.
SNB said the move is driven by the renewed escalation of the euro-zone crisis. Though SNB believes the losses from exposure to the periphery countries would be “relatively small,” the “accompanying deterioration in economic conditions would bring substantial losses.”
Credit Suisse said it was one of the best funded and capitalized global banks.