Stocks Slide Wednesday on Renewed

Stocks Slide Wednesday on Renewed Fears About the Banking System

Bank stocks came under more pressure Wednesday as questions surrounding the fate of one of the world’s largest financial institutions, Credit Suisse, spilled over into the broader market.

The Dow Jones Industrial Average opened down nearly 600 points as the bank’s largest investor, Saudi National Bank, said it could not buy any more shares beyond the 9.88% it already owns, citing regulatory limits. It ended the day down 281 points after Swiss National Bank said it would offer Credit Suisse support if needed

Shares of the bank, already slumping after it published its annual report on Tuesday noting “material weaknesses” in its financial controls, fell more than 20% in premarket trading. The bank is undergoing a reorganization following a series of problems, and the Saudi investment is part of that turnaround plan.

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