Credit Suisse, Switzerland's second-largest bank, said it would borrow nearly $54 billion from the Swiss central bank in an effort to calm market fears that it could succumb to the contagion sweeping the global financial sector.
Still, the bank's shares tumbled on Wednesday as investors fretted that it would crumble under the weight of losses triggered by a rapid rise in U.S. interest rates, just as California-basedSwiss regulator FINMA and the Swiss National Bank stepped in to offer financial support following a day of panicked trading.hours later, early Thursday morning local time, that it would take the central bank up on the offer by borrowing 50 billion Swiss francs, or about $53.7 billion.
Credit Suisse said that the moves were a"decisive action to pre-emptively strengthen" liquidity and reassure investors. "We thank the SNB and FINMA as we execute our strategic transformation," Koerner added."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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