It's been a turbulent week or so for the global banking system, beginning with a collapse of Silicon Valley Bank and then more recently, the dramatic fall in shares of Switzerland's second largest commercial bank, Credit Suisse. We've talked about what happened with Silicon Valley Bank before, so let's take a look at what's been going on with Credit Suisse in the last couple of days. On Wednesday, Credit Suisse shares nosedived as much as 30% after its top shareholder, Saudi National Bank, ruled out any further investment, citing regulatory issues. The fall in Credit Suisse stock prompted big falls at other large European lenders like BNP Paribas and Deutsche Bank. A number of bank stocks, including Credit Suisse, were temporarily halted from trading on Wednesday morning due to the steep losses. In an attempt to steady the ship, Credit Suisse then took the decision to preemptively strengthen its liquidity by borrowing up to 50 billion francs from the Swiss National Bank. That's just under $54 billion. The $54 billion lifeline from the central bank sent Credit Suisse shares soaring by some 30% when markets opened on Thursday. Even though this latest drama coincided with the fallout of Silicon Valley's bank collapse, Credit Suisse is difficulties predate this week's events. A series of scandals has rocked the bank, including bad bets, a corporate spying scandal and being found guilty last year by Switzerland's federal criminal court for failing to prevent money laundering.
The bank also reported its worst annual loss in 2022 since the 2008 financial crisis. Then on Tuesday this week, before the latest share price drop, the bank's auditor, PwC, said it had revealed material weaknesses in its internal controls over financial reporting. Credit Suisse's annual report was released this week showing that customer deposits had fallen 41% at the end of last year compared with a year earlier. Speaking about the situation, Credit Suisse's chief executive Ulrich Koerner said that my team and I resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs. Credit Suisse is very embedded in the global financial system, so this week's events have sparked fear of a new global banking crisis. But the actions of the Swiss National Bank appears to have done enough for now to stop the crisis spreading.
Two and a half tons of uranium have gone missing from a site in Libya, according to UN nuclear inspectors. The International Atomic Energy Agency, or IAEA, told member states that ten drums containing uranium ore had gone missing from the undisclosed site, which is not under Libyan government control. It's unclear who took it or where it is but the IAEA says it's conducting further investigations. The uranium ore in question can't immediately be used for energy or weaponry, as it would need to undergo an enrichment process. But in the long term, each ton could be refined to 5.6kg of weapons grade material. If in the hands of a group with the technological means and resources. Libya has been divided into competing political and military factions since Colonel Gaddafi was deposed in 2011. A trip to the site in question by UN inspectors last year had to be postponed because of fighting between militias.
South Korea's President Yoon Suk Yeol went to Japan today to meet his counterpart, Fumio Kishida, the first such meeting in 12 years as the two countries with a difficult history try to address their shared challenges ahead of the summit. North Korea launched a suspected intercontinental ballistic missile into the sea between the Korean Peninsula and Japan, the latest in a series of recent tests. President Yoon said that this demonstrated that North Korea's ever growing nuclear and missile threats are a grave threat to international peace and stability. Japan and South Korea are attempting to put up a united front against their shared regional challenges and have agreed to mend an almost four year trade dispute. Restart suspended shuttle diplomacy between the leaders and hailed a new starting point for their relationship.
It's been reported this week that a 13 year old indigenous Australian boy spent 45 days in solitary confinement in a prison in Queensland. 22 of those days were consecutive and this was only as punishment for a minor offence. The individual, referred to only as Jack, flooded his cell with water from his toilet after being denied drinking water. His barrister, Tim Graue, told the BBC that he had no serious criminal history and that his detention was extraordinary and cruel. He suspected the reason that Jack was in solitary so long was down to a staff shortage at the prison. He argued that this situation could indicate that a similar situation is occurring with other young prisoners, saying, You hope not, but maybe it's more common than we thought.
