Shares of Credit Suisse suffered their worst week since the 2008 financial crisis -Dlight News

Shares of Credit Suisse suffered their worst week since the 2008 financial crisis

Shares in Credit Suisse fell again on Friday, as the Swiss bank struggled to convince investors that a series of measures would restore its finances. By afternoon trading in Zurich, Credit Suisse stock CSGN, -8.90% CS, -3.47% fell another 7%. Its stock is down 26% this week, marking its worst weekly performance since the 2008 financial crisis. Credit Suisse, as well as its Swiss regulators, have insisted it has no problem with falling bond prices in portfolios facing US banks, such as the broken SVB Financial. Credit Suisse says it will borrow up to 50 billion francs ($54 billion) from the Swiss National Bank as it also launches an offer to buy back 3 billion francs worth of its debt. Credit Suisse has its own troubles, stemming from a series of scandals that have resulted in five consecutive quarters of losses and an outflow of nearly $100 billion from its wealthy clients in the fourth quarter. In its annual report this week, Credit Suisse acknowledged material financial control problems. Its shares saw renewed pressure after its top shareholder, the chairman of Saudi National Bank, said he would not invest more in the Swiss bank, though he later clarified that he had not been asked, and the red line was not raising its 9.9. % ownership threshold. Ratings agency DBRS Morningstar has downgraded its credit rating on Credit Suisse to triple-B, which is still investment grade, from single A. It said Credit Suisse “continues to report payment errors and compliance failures, resulting in a visible weakening of the franchise. Higher levels of deposit outflows along with higher costs in the fourth quarter of 2022. It said its wealth management division remained resilient as expected.” No, “and this weakness is likely to continue.”

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