The Credit Suisse title opened on March 16 on the Zurich Stock Exchange with a spectacular riseof 30.82%, after the announcement hours before that the Swiss National Bank (BNS) will make a loan of 54,000 million dollars
The stock had lost a quarter of its value the day before, dragged down by the banking crisis in the United States and the general distrust of investors towards the financial sector, exacerbated in his case by the dismal results of his accounts in the last two years and a succession of scandals.
(Keep reading: Why the world could be headed for a worse financial crisis than 2008?)
With this rise in the price of its shares, Credit Suisse makes up for lost ground on Wednesdaywhen it closed the session with a 24% drop, after having dropped as much as 30% in mid-afternoon, the worst decline among European banks, all punished by the wave of panic that gripped the markets.
After receiving insistent requests from the bank, the SNB and the Swiss Financial Market Supervisory Authority (FINMA) decided to issue a joint statement of support for the entitybut clearly this step was judged insufficient to calm the storm, so in the middle of the night the loan from the issuing entity was announced.
with this money, the bank indicated that it will make a repurchase for 3,200 million dollars of senior debt securitieswhich will save you paying interest in a context of rising rates.
(You can read: Differences between the collapse of Silicon Valley Bank and the 2008 crisis).
This points to a strategy that goes beyond simply preventing any threat of bankruptcy, a possibility that was considered highly unlikely among analysts as Credit Suisse largely complies with strict banking regulations in place in Switzerland and the rest of Europe regarding liquidity. and capital, aimed at guaranteeing the stability of the system.
In the context of the 2008 financial crisis, the bank was classified as “systemically important” (“too big to fail”) for the Swiss and European economy, which explains the quick reaction of the Swiss authorities.
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