24.2 C
Wednesday, November 30, 2022

Credit Suisse Shares Tank 10% on Restructuring, Capital Concerns

Must read

Listen now
- Advertisement -

Shares of Credit Suisse plunged nearly 10% in Europe’s morning session, after the Financial Times reported the Swiss bank’s executives are in talks with its major investors to reassure them amid rising concerns over the Swiss lender’s financial health.

One executive involved in the talks told the Financial Times that teams at the bank were actively engaging with its top clients and counterparties over the weekend, adding that they were receiving “messages of support” from top investors.

In a statement to CNBC on Monday, the bank said it will provide updates on its strategy review when it releases its third-quarter results on Oct. 27.

“It would be premature to comment on any potential outcomes before then,” it said.

Spreads of the bank’s credit default swaps (CDS), which provide investors with protection against financial risks such as default, rose sharply Friday. They followed reports the Swiss lender is looking to raise capital, citing a memo from its Chief Executive Ulrich Koerner.

The stock is down about 60% year-to-date.

“I trust that you are not confusing our day-to-day stock price performance with the strong capital base and liquidity position of the bank,” the CEO said in a separate staff memo obtained by CNBC.

- Advertisement -

More articles


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -

Latest article