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- Credit Suisse shares rose more than 30% as the market opened after the bank announced it would borrow up to $54 billion from the Swiss National Bank.
- This comes after major investor Saudi National Bank said it would not inject more cash due to regulatory restrictions after Credit Suisse shares plunged to new all-time lows on Wednesday.
- The Swiss National Bank and the Swiss Financial Market Supervisory Authority said in a statement that Credit Suisse “meets the capital and liquidity requirements of systemically important banks”.
A branch of Swiss banking giant Credit Suisse behind a window under the rain in Basel. (Photo by FABRICE COFFRINI/AFP) (Photo by FABRICE COFFRINI/AFP via Getty Images)
Fabrice Coffrini | Photo Afp | Getty Images
Credit Suisse shares surged more than 30% after Thursday’s market opened after the bank said it would borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank.
The share price gains slowed slightly in early trading, but were still up 23% at 8:48 am London time.
The beleaguered lenders announced late Wednesday that they would exercise options to borrow from the Swiss Central Bank under the Covered Loan Facility and the Short-Term Liquidity Facility.
The Swiss National Bank and the Swiss Financial Market Supervisory Authority said in a statement on Wednesday that Credit Suisse “meets the capital and liquidity requirements imposed on systemically important banks”.
The bank also offered to repurchase approximately CHF 3 billion worth of debt related to ten US dollar-denominated senior debt securities and four euro-denominated senior debt securities.
Credit Suisse CEO Ulrich Körner said in a Wednesday release: “These measures represent a decisive move to strengthen Credit Suisse and will continue to serve our customers and other stakeholders. We continue to make strategic changes to deliver value to our customers.
“appreciate [Swiss National Bank] FINMA when implementing strategic change. My team and I are determined to move forward quickly to provide our clients with a simpler, more focused bank built around their needs. ”
Shares of Credit Suisse, along with many other European banks, began to fall earlier in the week on concerns about the spread of the Silicon Valley bank’s collapse.
The Swiss bank’s losses worsened on Tuesday after it announced it had found “significant weaknesses” in its financial reports for 2021 and 2022, but this did not affect the accuracy of the bank’s financial statements.
Credit Suisse shares hit record lows for a second straight day on Wednesday after top investor Saudi National Bank said it would not inject more cash due to regulatory restrictions.
The Saudi National Bank has acquired a 9.9% stake in Credit Suisse as part of Credit Suisse’s $4.2 billion capital raising to improve investment banking performance and address a series of risk and compliance failures. Funded a major strategic overhaul aimed at.
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