Credit Suisse shares plunge 30% as bank raises $50 billion
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Credit Suisse shares plunge 30% as bank raises $50 billion

On Thursday, Credit Suisse announced measures to bolster its liquidity by securing up to $54 billion from the Swiss National Bank. The decision followed a steep 30% fall in the bank’s shares, which added to concerns about the banking sector’s deposit crisis. Regulators and financial leaders temporarily stabilized markets following the collapse of Silicon Valley Bank (SVB) last week, but renewed worries about Credit Suisse reignited concerns.

In a statement, Credit Suisse said the additional liquidity would support its “core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more client-centric bank.”

Along with the Swiss National Bank loan, Credit Suisse said it repurchased a large portion of its debt to better manage liabilities and spending.

Once a major player on Wall Street, Credit Suisse has experienced compliance violations and other missteps that have tarnished its reputation with clients and investors. The bank launched a “radical” plan to restructure its operations in October, which included cutting 9,000 full-time jobs, spinning off its investment bank and focusing on wealth management. CNN reports that analysts are predicting the lender may need additional funds to absorb potential losses in 2023.

Despite the market turmoil caused by the collapse of SVB and Signature Bank in the US, Credit Suisse CEO Ulrich Krner reported that the bank had “significantly good cash inflows” on Monday.