Banking Giant Credit Suisse Spreads “Failure Theory” Again? Answer: Don’t Confuse Stock Price Trend With Its Capital Strength | A hot title

A few days ago, according to a reporter from the Australian Broadcasting Corporation, there was “reliable information” that a large international investment bank was on the brink of crisis and many people speculated that this large investment bank was Credit Suisse.

On October 3, local time, Credit Suisse USA shares fell more than 6% ahead of the market. Default swaps rose as stocks fell to new lows. On Friday, Credit Suisse’s chief executive issued a note to employees saying that “he trusts that employees do not confuse the company’s daily stock performance with the solid capital base and liquidity it actually has.”

Korner was appointed Chief Executive Officer of Credit Suisse at the end of July. In an attempt to change things, he has had to deal with market speculation, bankers’ outflows and these doubts about capital. As for the growing issuance of default swaps, Credit Suisse’s insurance costs on defaulting bonds increased by about 15% last week, to the highest level since 2009. This also led to the company’s share price reaching new levels. minimum.

The bank is reportedly exploring a deal to sell its securitized products. Credit Suisse may still need to raise about $ 4 billion in additional capital after selling some assets, including to finance the restructuring, KBW said. On October 27, Credit Suisse will present an updated strategy outlining the investment banking business plan.

The head of Credit Suisse reportedly responded to the bankruptcy rumors and declined to comment on the news.

Is the banking giant Credit Suisse spreading the “bankruptcy theory” again? Answer: Do not confuse the stock price trend with its equity strength. Click on the video to see what it is!

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