Despite efforts to allay concerns about a banking sector catastrophe, the stock market has crept down and Credit Suisse’s share price has dropped by more than 10%.
The country’s central bank has granted the struggling Swiss lender a £45 billion lifeline.
Its shares, however, are currently falling while markets in the UK and Europe have gone negative following a brief rally.
Key US indices declined amid worries of further problems.
After the bankruptcy of two other mid-sized American banks in recent days, a group of Wall Street titans invested $30 billion (£24.8 billion) on Thursday into First Republic, a smaller domestic bank that was thought to be at risk of failing.
Stock markets seemed to have stabilized following the rescue by a group of 11 banks, including JP Morgan and Citigroup. Japan’s Nikkei share index ended the day 1.2% higher in Asia.
Nevertheless, after the bank announced it was stopping its dividend payout to shareholders “during this moment of uncertainty,” First Republic’s stock plunged more than 15% on Friday.
The UK, French, and German stock markets all started out higher but have subsequently declined.
