KEY POINTS
  • Shares of the Swiss bank slid after its biggest backer said it won't provide further financial support.
  • The move appeared to be hitting large and regional U.S. banks as well.
  • While Credit Suisse's struggles appear unrelated to the mid-tier U.S. banks, the combination of the two issues could spark a broader reexamination of the banking system among investors, according to Peter Boockvar of Bleakley Financial Group.

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A man is seen in silhouette walking past a branch of Switzerland's Credit Suisse bank in Vevey, western Switzerland, on March 15, 2023

Bank stocks were under pressure on Wednesday as the sharp drop of Credit Suisse rattled a segment of the market that was already reeling from two large bank failures in the past week.

Shares of the Swiss lender fell more than 20% after the chairman of its biggest backer — the Saudi National Bank — said it won't provide further financial support, even though it sees Credit Suisse as a strong bank and is happy with its turnaround plan.

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