Credit Suisse Stock Rebounds as Swiss National Bank Extends $54B Lifeline
Summary from the AllSides News Team
Credit Suisse, the second-largest bank in Switzerland, announced on Wednesday that it will borrow up to 50 billion Swiss francs ($53.68 billion in U.S. dollars) from the Swiss National Bank.
The Details: Shares in Credit Suisse fell more than 30% Wednesday to a record low of about 1.56 Swiss francs per share, after its largest investor, the Saudi National Bank, said it's not planning to increase its nearly 10% investment. Shares then jumped after the bank announced it would tap the Swiss National Bank lifeline.
Key Quote: "This additional liquidity would support Credit Suisse’s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs," the bank said.
For Context: The troubles faced by Credit Suisse, such as a history of money laundering and bribery, are distinct from the two recently-collapsed U.S. lenders, Silicon Valley Bank and Signature Bank. The international Financial Stability Board has designated Credit Suisse as one of only 30 global financial institutions considered "too big to fail."
How the Media Covered it: Sources across the political spectrum covered the news, with many framing it in the context of SVB's collapse and quoting analysts who remain wary about the bank's prospects.
Featured Coverage of this Story
From the CenterCredit Suisse Stock Price Jumps as Bank Secures $50 Billion Lifeline
Credit Suisse shares jumped after the bank said it would tap a more than $50 billion lifeline from the Swiss National Bank, but analysts remained wary about the lender’s prospects.
Investor confidence in the Swiss bank deteriorated rapidly this week, after investors turned their attention to the struggling lender following the collapse of two large banks in the U.S.
The sudden evaporation of support from markets prompted the SNB, Switzerland’s central bank, to offer rescue funds late Wednesday. Credit Suisse called its use of the lending facility a “decisive action to pre-emptively strengthen...
From the LeftCredit Suisse shares soar after securing a $54 billion lifeline from Switzerland
Shares of Credit Suisse jumped Thursday after saying it would borrow up to $54 billion from Switzerland's central bank, an emergency step intended to prop up investor confidence in the troubled European bank.
Credit Suisse shares had plunged on Wednesday, prompting stock markets to fall in the U.S. and around the world, amid rising concerns about the stability of the global banking system after U.S. regulators were forced to rescue Silicon Valley Bank and Signature Bank on Sunday.
Credit Suisse's troubles, however, were distinct from the two collapsed U.S. lenders....
From the RightSVB collapse: Credit Suisse shares soar following two-day decline
Credit Suisse shares soared on Thursday following its announcement that it would borrow over $50 billion from the Swiss National Bank.
Shares soared up to 33%, a massive increase from Wednesday after shares declined 30% before settling at a 25% gain. The bank hit two all-time lows following the collapse of Silicon Valley Bank in the United States. While the two are not directly linked, the hit in Swiss bank stocks was amplified by investor fears regarding the California-based bank's failure.
The drop in shares from Credit Suisse, the second-largest bank in Switzerland, dragged...