Focus on the BIG picture.
Sunday, Feb 25, 2024

0:00
0:00

Credit Suisse to borrow $54 billion from Swiss central bank

Switzerland-based global bank Credit Suisse AG said it would borrow 50 billion Swiss francs (€50.7 billion, $54 billion) from the country's central bank on Thursday, in a move meant to strengthen its liquidity and deposit reserves.
Shares of the embattled investment bank and financial firm soared in trading after the announcement, which followed the worst trading day in Credit Suisse's history.

The move to borrow from the Swiss National Bank makes Credit Suisse the first major global bank to be extended such a lifeline since the 2008 global financial crisis. Swiss authorities on Wednesday said Credit Suisse met "the capital and liquidity requirements imposed on systemically important banks" and that it could access central bank liquidity if needed.

Central banks across the world extend liquidity to banks during periods of market turmoil, including that induced by the COVID pandemic. The steps come during a severe slump in Credit Suisse's share price that triggered larger fears of a broader bank deposit crisis.

The bank also made a buyback offer on $2.5 billion worth of US debt and €500 million in European debt.

"These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders," said the investment firm's Chief Executive Officer, Ulrich Körner.


What triggered the selloff?

Credit Suisse's stock fell as much as 30% on Wednesday triggered by a Bloomberg TV interview where Mr. al-Khudairy of the Saudi National Bank — Credit Suisse's largest shareholder — said it would "absolutely not" push more liquidity into the bank. He later clarified that his staunch position was to abide by regulatory rules and statutory limitations.

The market, already on edge from last week's collapse of two mid-size US firms Silicon Valley Bank and Signature Bank, continued to sell Credit Suisse shares despite reassurance that the bank had a strong liquidity base with a 150% cash deposit ratio. A cash deposit ratio is the amount of money a bank should have available as a percentage of the total amount of money its customers have deposited in the bank.

Meanwhile, two supervisory sources told Reuters news agency that the European Central Bank had contacted banks on its watch to question them about their exposures to Credit Suisse. The US Treasury also said it is monitoring the situation around Credit Suisse and is in touch with global counterparts, according to a Treasury spokesperson.
Newsletter

Related Articles

0:00
0:00
Close
More South Korean men become stay-at-home dads
Nvidia Surges to $2 Trillion Market Value Amid AI Boom
German Parliament Approves Cannabis Legalization with Restrictions
UK Sets Online Slot Game Limits to Fight Gambling Addiction
Bosch to Slash 3,500 Positions in Home Appliance Division Amid Cost-Cutting Measures
Israel's New Settlements In West Bank "Inconsistent" With International Law: Antony Blinken
"Biden Urges Prompt Aid for Ukraine Amid Stalled Funding"
UAE Removed, Kenya And Namibia Added To Global Money Laundering List
Ukrainian Forces Down Russian Reconnaissance Plane
This is what happens when Hillary Clinton fails to silence an interactive audience...
FBI disrupts hacking network 'linked to Russian intelligence services'
Is Space Becoming the Next Battlefield?
Lockbit Ransomware Disruption and Future Prospects
AI will drive efficiency amid global economic slowdown, leading financiers tell FII Priority Summit
WTO’s Ministerial Conference in Abu Dhabi to address decentralization of global supply chains
UK Police Make Record Cocaine Seizure Worth $568 Million
FBI Informant Charged For Lying About Bidens Re-Arrested
US School Legally Punished Black Student Over Hairstyle, Judge Rules
Occupy USA: Millions of Highly Motivated Illegal Immigrants vs. a Single, Overpaid, and Underequipped Border Control Officer at the Southern US Border
London’s shrinking stock market suffered a fresh setback after British drugmaker Indivior said it could move its primary listing to the US
"Good Night Malaysian 370": A Decade Later, Still the Greatest Aviation Enigma
El Salvador's President Calls for Free and Fair American Democracy
U.S. Returns to the Moon with First Private Lander in Over 50 Years
Wall Street’s S&P 500 and Japan’s Nikkei hit record highs amid AI boom
Apple says Spotify wants ‘limitless’ access to its tools without paying
Nvidia reports enormous revenue as AI hits a tipping point
Parenting advice YouTuber given maximum sentence for child abuse
Only 10% of Europeans believe Ukraine can defeat Russia — poll
French Man Arrested For Stealing 7,000 Wine Bottles Over 15 Years
Frozen Embryos Created Through IVF Are Babies, Says Nikki Haley
Putin Critic Navalny's Mother Shown His Body, Claims Russia Wants Secret Burial
Biden Meets Putin Critic Navalny's Family In California
Secretary of State urged staffers to avoid ‘problematic’ terms like ‘manpower’ and ‘mother/father’
Pharmacies nationwide face delays as health-care tech company reports cyberattack
AT&T outage: Most cell service back after widespread outages
Surge in Nvidia's stock: This represents the sharpest one-day market value increase for any company ever, with an addition of about $250 billion.
Google announced that starting today, it is blocking the ability to create images of humans using Gemini, following criticism on social networks
Woke AI Rewrites History: Google's chatbot (Gemini) was asked about the events of October 7th and responded that it is a fictional event and that there is no evidence of terrorist acts against Israelis on October 7th.
‘Absurdly woke’: Google’s AI chatbot spits out ‘diverse’ images of Founding Fathers, popes, Vikings
Biden Unveils Expanded Student Debt Forgiveness
Reddit Strikes AI Content Licensing Deal With Google: Report
US charges yakuza gang leader over conspiring to sell nuclear material
Man seeks nearly $1B in lawsuit against lottery organizers after website error listed his numbers as winner
NY village 'losing its soul' as nation's oldest gun manufacturer flees blue state for Georgia
Biden cancels $1.2 billion in student debt six months ahead of schedule
Amazon joins the Dow, the 'elite' club of the US stock market's biggest companies
HSBC shares dive 8% as profit expectations fail to satisfy investors
"Made Me Watch Porn For Spiritual Growth": Ex Nuns On Renowned Priest
Ukraine Arrests Father-Son Duo In Lockbit Cybercrime Bust
US Offers $15 Million For Info On Leaders Of Cybercrime Group Lockbit
×