Credit Suisse sheds another 5% as traders digest emergency liquidity

An office building of Credit Suisse Group AG at night in Bern, Switzerland, on Wednesday, March 15, 2023.

Stefan Wermuth | Bloomberg | Getty Images

Credit Suisse shares fell 5% in early trade on Friday after rising sharply in the previous session as the embattled lender said it would take up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank lend.

Intervention by Swiss authorities, who also reiterated that Credit Suisse meets capital and liquidity requirements imposed on “systemically important banks,” pushed shares up more than 18% on Thursday after closing at an all-time low on Wednesday .

The slide came after top investor, the National Bank of Saudi Arabia, announced it would no longer provide cash to the bank due to regulatory requirements, fueling a downward spiral in Credit Suisse’s share price linked to the delay in full-year results of financial reporting concerns.

The bank is undergoing a massive strategic overhaul aimed at restoring stability and profitability after a litany of losses and scandals. The reorganization includes the spin-off of the investment bank into US-based CS First Boston, a sharp reduction in exposure to risk-weighted assets, and a $4.2 billion capital raise funded in part by Saudi National’s acquired 9.9 -owned stake is financed bank.

However, the capital markets reacted with skepticism. Credit Suisse saw huge outflows in assets under management, while credit default swaps, which insure bondholders against a company’s default, soared to new record highs this week.

This is breaking news and will be updated shortly. Credit Suisse sheds another 5% as traders digest emergency liquidity

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