Saudi National Bank chair resigns after Credit Suisse buyout

THE chairperson of Saudi National Bank, the main shareholder of Credit Suisse before its buyout this month, has resigned, a statement by the bank indicated on Monday (Mar 27).

The Saudi bank’s board of directors “accepted the resignation” of Ammar Al Khudairy “due to personal reasons”, said the statement published on the Saudi stock exchange.

Credit Suisse’s shares plummeted on Mar 15, after he said that the Saudi bank would not raise its stake from 9.8 per cent due to regulatory constraints.

The following day, Credit Suisse rallied on the stock market, after grabbing a US$54 billion central-bank lifeline in a bid to restore investor confidence.

But fears about the health of the broader financial sector led to the Swiss bank’s takeover by domestic rival UBS on Mar 19.

In the immediate aftermath of his comments, Al Khudairy tried to minimise what he described as a “panic”.

“If you look at how the entire banking sector has dropped, unfortunately, a lot of people were just looking for excuses,” he told CNBC television.

“It’s panic, a little bit of panic I believe is completely unwarranted, whether it be for Credit Suisse or for the entire market.”

Saeed Mohammed Al Ghamdi, who had been serving as chief executive officer, will replace Al Khudairy as chair, Monday’s statement said.

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Talal Ahmed Al Khereiji has been appointed acting chief executive officer, it said. REUTERS