Tabloid Headline In Main Stream Media Leads To Credit Suisse Bank Downfall
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We thought tabloid press wreak havoc in celebrity lives. At least celebrities have something to tradeoff. Who would have thought a tabloid like headline would create havoc to a swiss bank?
Before digging in — what’s my definition of tabloid headline? take a normal looking line somebody said, take a part of it and make it a headline with the sole goal of making it sensational.
In other words, the celebrity screams — I was taken out of context!
Same happened to the chairman of the Saudi bank.
The tabloid headline, across the world, reads: Credit Suisse’s biggest backer, Saudi National Bank, has said it won’t provide further financial help for the bank.
The headline should have read: Credit Suisse’s biggest backer, Saudi National Bank, has said it won’t provide further financial help for the bank because they hit the regulatory limit of how much Saudi National Bank can hold at Credit Suisse.
Honest line which is factually correct but not sensational enough to make money: Credit Suisse’s biggest backer, Saudi National Bank, has hit the regulatory limit of how much they can hold at Credit Suisse limiting their ability to provide further financial help — if needed.
This is exactly what happened as an answer.
You can guess the question the Chairman of the Saudi National bank was asked.
“We cannot because we would go above 10%. It’s a regulatory issue,” Saudi National Bank Chairman Ammar Al Khudairy told Reuters on Wednesday. However, he added that SNB is happy with Credit Suisse’s transformation plan and suggested the bank was unlikely to need extra money.
Why did I do the research?
It made no sense to me that equity owner of a bank would come out openly and say — I will not invest anymore in my investment. It made no common sense. So, I dug around and found the context.
When I walk by the grocery store and see the tabloid magazines near the checkout counter — I used to think why does gossip get so much attention. I never thought that tabloid headline would hit closer to home.
If your market investment portfolio took a nose dive because of this today — remind everyone around you — tabloid headlines is now impacting your networth too!
If you feel otherwise, add to the comments.
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