For those that haven't read, the distressed bank's biggest shareholder, Saudi National Bank, which is 37% owned by the kingdom's sovereign wealth fund, has publicly ruled out further investment for the bank.

It's the last message you want to send during a time where markets are already jittery following several bank runs and resultant bank shutdowns.

From an excellent Zero Hedge writeup of the situation so far this morning, this has led to "the cost of insuring the bank's bonds against default in the near term to distressed levels." 

"One-year credit default swaps for the embattled Swiss lender were indicated at 835.9 basis points on Tuesday's close of business, based on pricing source CMAQ. Other pricing sources point to a further rise on Wednesday, while a level of 1,000 would indicate serious concern," Bloomberg said.