The company’s logo can be seen at the global headquarters of the Swiss bank Credit Suisse in Zurich, Switzerland.
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Arnd Wiegmann/Getty Images
The company’s logo can be seen at the global headquarters of the Swiss bank Credit Suisse in Zurich, Switzerland.
Arnd Wiegmann/Getty Images
Shares in Credit Suisse rose on Thursday after it said it would borrow up to $54 billion from the Swiss central bank, an emergency move aimed at boosting investor confidence in the troubled European bank.
Shares in Credit Suisse fell on Wednesday, sending stock markets lower in the U.S. and globally amid concerns about the stability of the global banking system after U.S. regulators were forced to bail out Silicon Valley Bank and Signature on Sunday. Bank.
Credit Suisse’s problems, however, differed from those of the two collapsed US lenders. The European Bank was already rocked by a series of scandals and bad decisions that several CEOs failed to address over the years.
The lender also recently acknowledged potential problems with its financials as far back as last year, and its shares subsequently fell on Wednesday after the chairman of its largest shareholder, National Bank of Saudi Arabia, said it would not add nearly as much. 10% investment.
But Credit Suisse has found a reprieve for now after it said late Wednesday it would borrow up to 50 billion Swiss francs, or about $54 billion, from the Swiss National Bank after the central bank earlier said it was ready to provide support if required.
Shares of the Swiss lender rose more than 20% in European trade.
Caution remains with global banks
Credit Suisse’s woes come as the failures of Silicon Valley Bank and Signature Bank raised concerns about the financial health of the US banking system, despite assurances from President Biden and administration officials.
U.S. Treasury Secretary Janet Yellen will testify before the Senate Finance Committee later Thursday and plans to say the U.S. banking system is “healthy” and reassure depositors that their money is safe, according to prepared remarks.
A drop in Credit Suisses on Wednesday raised fears that worries about the US financial system were spreading to other parts of the world.
Although Credit Suisse’s shares trade at a fraction of what they once were, it is still considered one of the banks considered important to the global financial system, given its global presence and deep involvement in international trade.