Swiss authorities and Credit Suisse Group AG are discussing ways to stabilize the bank, according to people familiar with the matter, after comments by its biggest shareholder on Wednesday helped trigger a plunge in the stock.
The firm’s leaders and government officials have talked about options that range from a public statement of support to a potential liquidity backstop, said the people, who asked not to be identified describing private discussions. Also among the ideas floated include a separation of the Swiss unit and a long-shot orchestrated tie-up with larger Swiss rival UBS Group AG, said the people, cautioning that it’s unclear which, if any, of these steps will actually be executed.
Spokespeople for Credit Suisse, UBS and the Swiss National Bank declined to comment. The nation’s finance ministry didn’t respond to requests for comment. Chief Executive Officer Ulrich Koerner on Tuesday preached patience and said the bank’s financial position is sound. He pointed to the firm’s liquidity coverage ratio, which indicates the bank can handle more than a month’s worth of outflows in a period of stress.
Switzerland’s second-largest lender, which traces its roots back to 1856, has been pummeled over the last several years by a series of blowups, scandals, leadership changes and legal issues. The company’s 7.3 billion franc loss last year wiped out the previous decade’s worth of profits, and the bank’s second strategy pivot in as many years has so far failed to win over investors or halt client outflows.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Swiss central bank offers Credit Suisse liquidity ‘if necessary’ amid stock plunge - National | Globalnews.caCredit Suisse 'meets the capital and liquidity requirements imposed on systemically important banks.,' the Swiss financial regulator FINMA and the Swiss National Bank said.
Read more »
Credit Suisse flags ‘material weaknesses’ in its internal controls over financial reportingCredit Suisse said it had not yet stemmed customer outflows as it released its delayed annual report on Tuesday
Read more »
'Markets are wild': Credit Suisse leads Europe bank rout in fallout from SVB collapseCredit Suisse led a six per cent fall in Europe\u0027s banking index, highlighting increasing investor concerns following SVB\u0027s collapse. Read on
Read more »
'Markets are wild': Credit Suisse leads Europe bank rout in fallout from SVB collapseCredit Suisse led a six per cent fall in Europe\u0027s banking index, highlighting increasing investor concerns following SVB\u0027s collapse. Read on
Read more »
Video: European bank stocks fall as Credit Suisse tumblesEurope's bank stocks came under pressure again on Wednesday (March 15), with Credit Suisse tumbling to a new low, as investors continued to worry about stresses within the sector following Silicon Valley Bank's collapse.
Read more »
Credit Suisse unease sparks selloff in world stocksRenewed unease gripped world markets on Wednesday as news that Credit Suisse\u0027s largest investor said it could not provide the bank with more financial assistance.
Read more »