At the same time, the bank announced a series of debt buyback operations for around 3 billion Swiss francs. “These steps are a decisive move to strengthen Credit Suisse as we continue our strategic transformation to bring value to our clients and other stakeholders,” Zurich banking group chief executive Ulrich Koerner said in a statement. a statement.
The announcement comes after the SNB announced on Wednesday that it will make liquidity available to Credit Suisse if needed. That same day, the title of the number two Swiss bank fell 24.24% at the close.
“Credit Suisse meets the capital and liquidity requirements imposed on systemically important banks. If necessary, the SNB will make liquidity available to Credit Suisse,” the SNB and Finma said in a statement. common aired in the early evening.
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Global Concerns
Earlier in the day, the two most senior executives of the number two Swiss bank had already tried to reassure on the financial solidity of the banking giant but without succeeding in convincing the investors who inflicted on the action of the bank the worst fall of its history.
Ulrich Koerner, the managing director of Credit Suisse, during a press conference on October 27, 2022 in Zurich. [Michael Buholzer – Keystone]
Perceived as the weak link, the establishment saw its share price drop by up to 30% to reach a new historic low of 1.55 francs despite the intervention of its president, Axel Lehmann and its general manager Ulrich Körner. to try to raise the bar. For the SNB and Finma, “the current turbulence on the American banking market does not suggest that there is a risk of direct contagion for Swiss establishments”.
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Credit Suisse shares lost almost 25% of their value on Wednesday
Too big to fail
The concern goes beyond the country’s borders and the US Treasury said it was “monitoring the situation and being in contact with its international counterparts”. French Prime Minister Elisabeth Borne had asked the Swiss authorities on Wednesday to resolve the problems of the establishment of the Paradeplatz.
Investors remained worried Thursday morning, the Asian stock markets opening sharply lower in the wake of the unscrewing the day before of the European places – Paris losing Wednesday evening 3.58% and London 3.83%, signing their worst session since March 2022.
The vertiginous fall of the title began after statements by the president of the Saudi National Bank, the largest shareholder of Credit Suisse. The Saudis came to the rescue of the bank by entering its capital in November. But the Saudi National Bank has “absolutely no” plans to inject more money, mainly for regulatory reasons, said Ammar al-Khudairy, its chairman.
Restructuring program
Unlike bankrupt California bank SVB, Credit Suisse is one of 30 global banks considered too big to fail, which means it has to deal with tougher regulations to be able to weather the storm.
Credit Suisse launched a restructuring program in October in an attempt to recover. But some shareholders ended up throwing in the towel. In early February, Credit Suisse announced a net loss of 7.3 billion francs for the 2022 financial year and warned that it still expected a “substantial” pre-tax loss in 2023.
Founded in 1856, Credit Suisse is a pillar of the Swiss financial center but it has been in turmoil since the bankruptcy of the British financial company Greensill, which marked the start of a series of scandals that weakened the bank. Since March 2021, the stock has lost more than 83% of its value.
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