On Thursday, Credit Suisse announced measures to spice up liquidity by securing as much as $54 billion from the Swiss National Bank. The decision followed a pointy 30% drop within the bank’s shares, adding to fears of a deposit crisis within the banking sector. Regulators and financial leaders temporarily stabilized markets after the collapse of Silicon Valley Bank (SVB) last week, but renewed concerns about Credit Suisse have reignited concern.
IN statementCredit Suisse said the extra liquidity would support its “core business and customers as Credit Suisse takes the obligatory steps to create an easier and more focused bank built around customer needs.”
Along with the Swiss National Bank loan, Credit Suisse said it had bought back a considerable amount of its debt to raised manage liabilities and expenses.
Once a significant player on Wall Street, Credit Suisse experienced compliance failures and other missteps that damaged its status with clients and investors. The bank launched a “radical” plan to reorganize its business in October, including cutting 9,000 full-time jobs, spinning off an investment bank and specializing in wealth management. CNN reports that analysts predict that the lender may have additional funds to cover potential losses in 2023.
Despite the market turmoil brought on by the collapse of SVB and Signature Bank within the US, Credit Suisse CEO Ulrich Krner said the bank experienced an “influx of fabric goods” on Monday.
