Credit Suisse offers to buy debt securities up to $3 billion: report



By IST (Released)

Credit Suisse, hit by scandals and losses, rushes into a restructuring plan.

Credit Suisse has offered to buy up to $3 billion in debt securities, the Bloomberg news agency reported on Friday. Hit by scandals and losses, Switzerland’s second-largest lender and one of the world’s largest investment banks is rushing through a restructuring plan.

Credit Suisse shares have lost about 55% of their value so far this year as investors await clarity on a strategic review announced by its management earlier this year in a bid to cut costs.

Switzerland’s second-largest bank has slipped into losses this year. He has has been embroiled in a series of setbacks in recent years, including a spy scandal involving UBS and fines for failing to prevent money laundering linked to a Bulgarian criminal gang 15 years ago.

Current Credit Suisse Group management said the bank was at a “critical juncture” as it prepared for an overhaul. CEO Ulrich Koerner, who took charge of the lender after the resignation of Thomas Gottstein, urged staff not to confuse day-to-day stock market movements with the bank’s “strong capital base and liquidity position”. .

Credit Suisse’s financial situation has fueled fears of a contagion effect in a situation similar to that of 2008, but many analysts believe this is unlikely, given the overall strength of the global financial system today that during the global financial crisis.

Source link


About Author

Comments are closed.