Shares in the Swiss lender fell by as much as 10% Friday morning, erasing some of Thursday’s gains, as investors feared that a $54 billion lifeline from the Swiss central bank might not be enough to rescue the beleaguered bank. The lender’s stock started to founder last week as turmoil in now-collapsed US lenders Silicon Valley Bank and Signature Bank set alarm bells ringing about banks in other markets. On Wednesday, Credit Suisse shares crashed as much as 30% to hit $1.
The stock rebounded 19% Thursday following the bank’s announcement that it would borrow 50 billion Swiss francs from the Swiss National Bank “to pre-emptively strengthen its liquidity.” But Credit Suisse’s problems owe more to “ongoing market confidence issues”, according to JP Morgan’s banking analysts. In a note on Thursday, they wrote that the bumper liquidity injection would not be enough to keep the bank afloat, and they saw a takeover by fellow Swiss lender UBS as the most likely endgame.
Credit Suisse was once the gold standard of the banking world. Armed with a huge asset base and First Boston they were perceived in the financial markets as being unsinkable. My how times have changed. Maybe the Swiss should join the world, help Ukraine, sell their looted assets.
Shareholders driving down share prices won’t hurt security of banks, just bank accounts of shareholders.
Sverige Senaste nytt, Sverige Rubriker
Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.
Källa: CNN - 🏆 4. / 95 Läs mer »
Källa: CNN - 🏆 4. / 95 Läs mer »