Saudi Arabia is readying a huge investment in scandal-hit Swiss bank Credit Suisse, according to reports. The Wall Street Journal reported that the Gulf Kingdom's Crown Prince Mohammed bin Salman will invest as much as $500 million in the embattled bank.
The Credit Suisse crisis was dealt left a $5 billion dent on its portfolio following the collapse of Archegos Capital Management last year.
Prince Mohammed's investment will go into Credit Suisse's investment arm CS First Boston spinout, the WSJ said, citing people with knowledge of the matter. It was also reported that former Barclays Plc chief executive Bob Diamond's Atlas Merchant Capital will also invest in the bank.
In October, it was reported that the Middle East's major sovereign wealth funds were exploring the option of funneling money into the investment bank business of Credit Suisse. Abu Dhabi's Mubadala Investment Co. and Saudi Arabia's Public Investment Fund were separately holding discussions with Credit Suisse, Reuters had reported.
Interest From Middle East
Reports said Middle Eastern nations were looking to seal a deal, taking advantage of the depressed value of Credit Suisse assets. Neither Credit Suisse nor the Gulf sovereign wealth funds had confirmed the move. "We have said we will update on progress on our comprehensive strategy review when we announce our third quarter earnings ... It would be premature to comment on any potential outcomes before then," Credit Suisse had said in a statement then.