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

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By CNBCTV18.com 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.

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