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Credit Suisse secures £44.5bn recovery deal
Troubled banking giant Credit Suisse has said it will borrow up to 50bn francs ($54bn; £44.5bn) from the Swiss central bank in a “strategic transformation.”
The move is the latest of Credit Suisse’s attempts to regain the confidence of their investors following a series of scandals and setbacks that have befallen the Swiss bank and pushed its stock price down to a record low.
Shares in Credit Suisse dropped by 24% following “weaknesses” it had found in its financial reporting.
This led to a mass sell-off in the European markets, stoking fears of a financial crisis.
This comes after Silicon Valley Bank (SVB) was shut down on Friday by US regulators in what was the largest failure of a US bank since 2008. Meanwhile, SVB’s UK arm was purchased for £1 by HSBC.
Credit Suisse CEO, Ulrich Koerner, said: “These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders.
“We thank the SNB and FINMA as we execute our strategic transformation. My team and I are resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs.”
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