Credit Suisse to borrow up to $54 billion from central bank
Credit Suisse shares slumped by as much as 31 per cent on Wednesday in Zurich trading
Zurich: Credit Suisse Group AG, seeking to weather a collapse in market confidence, said it will borrow as much as 50 billion francs ($54 billion) from a Swiss National Bank liquidity facility as it offers to repurchase debt.
The bank is making a tender offer to buy back up to approximately 3 billion francs of dollar- and euro-denominated debt, according to a statement.
“These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation,” CEO Ulrich Koerner said in the statement. “My team and I are resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs.”
Credit Suisse shares slumped by as much as 31 per cent on Wednesday in Zurich trading, and its bonds fell to levels that signal deep financial distress, as persistent doubts over the scandal-ridden lender combined with a global selloff in banking stocks. The government, central bank and financial regulator Finma have been discussing ways to stabilize the bank after a tumultuous day sparked by the firm’s largest investor ruling out increasing its stake, Bloomberg reported earlier.