Saudi National Bank's Bad Investment Leads to Leadership Shakeup

　　Saudi National Bank (SNB) is facing a leadership shakeup following a disastrous investment in Credit Suisse. The bank's chairman, Ammar Al Khudairy, has resigned and been replaced by CEO Saeed Mohammed Al Ghamdi. The move comes after SNB poured fresh money into Credit Suisse as part of a capital hike, a decision that backfired spectacularly.

　　SNB's Ill-Fated Investment in Credit Suisse

　　In October 2022, Credit Suisse's long-term investor, Harris Associates, began selling off its entire 10% stake in the bank. This triggered a sell-off by other investors, causing Credit Suisse's stock price to plummet. In response, SNB stepped in to buy more shares, increasing its stake to nearly 10%. This move was seen as a vote of confidence in Credit Suisse, but it proved to be a grave mistake.

　　Al Khudairy's Comments Spark Panic

　　In March 2023, Al Khudairy sparked a panic among Credit Suisse investors when he asserted that SNB was "absolutely not" prepared to further raise its stake. This statement led to a rout in Credit Suisse stock, wiping out any chance of a recovery. The damage was compounded by Al Khudairy's subsequent attempts to repair the damage, which only served to confirm investors' fears.

　　Swiss Officials Step In

　　The loss of confidence in Credit Suisse prompted Swiss officials to begin drafting emergency legislation to enable a rescue of the bank. The deal, announced on Sunday evening, brings to an end Credit Suisse's more than 166 years of history as an independent bank. UBS plans to acquire 100% of its crosstown rival for the bargain price of just 3 billion francs.

　　Al Khudairy's Career and Resignation

　　Al Khudairy has spent his career in Saudi Arabia's financial sector, running some of the kingdom's top institutions. He became chairman of SNB when the Gulf state's largest commercial lender was created through the merger of National Commercial Bank with Samba Financial Group. His resignation marks the end of an era for SNB and raises questions about the future of the Saudi banking sector.