Credit Suisse stock operated at a sharp rise at the opening this Thursday (16), after receiving support from the Swiss Central Bank to reassure the markets, hours after registering the worst session in its history.
At 11:20 am (8:20 am Brasília time) the bank’s title was up 22.30% on the Zurich Stock Exchange, at 2.07 Swiss francs, after registering a historic low of 1.55 francs on Wednesday, when the Credit Suisse collapsed 24.24%.
Credit Suisse announced during the early hours of Thursday (16) that it will request a loan of up to 50 billion Swiss francs (US$ 53.7 billion, R$ 284.4 billion) from the Central Bank.
The bank also announced a series of debt repurchase operations for almost CHF3 billion.
“These steps are a decisive move to strengthen Credit Suisse as we continue our strategic transformation to deliver value for our customers and other stakeholders,” said bank CEO Ulrich Koerner in a statement.
After a much questioned silence at the beginning of the week, the Swiss Central Bank and the country’s Financial Market Supervisory Authority announced a CS bailout on Wednesday.
“Credit Suisse meets the capital and liquidity requirements imposed on banks of systemic importance,” the Swiss National Bank (BNS, central bank) and Finma (Financial Market Supervisory Authority) said in a joint statement.
“In case of need, the BNS will make liquidity available to Credit Suisse”, added the institutions.
The collapse of Credit Suisse came just days after the bankruptcy of Californian bank SVB (Silicon Valley Bank) following a wave of large-scale withdrawals from customers, which left the establishment struggling to maintain flow on its own.
But unlike SVB, CS is part of a group of 30 international banks considered too important to fail, which also imposes stricter rules to resist market shocks.
The concern goes beyond the borders of Switzerland. The US Treasury Department said it was “monitoring the situation and in contact with international authorities”.
accumulation of setbacks
“We hope the measures will calm the markets and stop the negative spiral,” said Andreas Venditti, an analyst at Vontobel, who sees the central bank’s help as “a strong signal”.
“But it will take time to fully regain confidence,” he added.
The collapse of Credit Suisse stock accelerated on Wednesday after the refusal of its main shareholder, the Saudi National Bank, to increase its stake in the capital.
Asked by Bloomberg TV if the Saudi bank could invest more money, its chairman, Amar Al Judairy, said: “The answer is absolutely no, for several increasingly simple reasons, which are regulatory and statutory.”
The Saudis currently own 9.8% of the Swiss bank. “If we go above 10%, a series of new rules come into effect,” he claimed.
The Saudis became CS’s biggest shareholders during a capital increase in November to finance a major restructuring of the entity.
The bank has been in trouble for two years, after the bankruptcy of the British financial company Greensill, which marked the beginning of a series of scandals that weakened the CS.
Some shareholders ended up throwing in the towel, like the American investment fund Harris Associates, one of its most important supporters and which revealed last week that it had sold its entire stake in Credit Suisse.