In early Tuesday trading, Credit Suisse shares hit an all-time low after the Swiss banking giant disclosed that it had discovered “material weaknesses” in its financial reporting over the past two years.
According to the Zurich-based firm, the “weaknesses” were related to a “failure to design and maintain an effective risk assessment process to identify and analyze the risk of material misstatements.”
As a result of the troubling disclosure, the Swiss bank’s stock fell as much as 5% in Tuesday trading to a fresh all-time low.
However, the shares have since pared some losses. Nevertheless, concerns about lingering turmoil in the banking sector persist, especially after the rapid collapse of Silicon Valley Bank and Signature Bank in New York. Some speculators have gone as far as suggesting that Credit Suisse could be next to fall.
To compound Credit Suisse’s woes, last week, the bank was forced to postpone the publication of its annual report for 2022 after receiving a last-minute call from SEC regulators.