Shares of Credit Suisse Drop Megabank Borrows $50 Billion in Large Amounts During Crisis
The megabank Credit Suisse, situated in Switzerland, doesn’t seem to be doing so well; on Wednesday, its shares fell 30%, sending a wave of uncertainty across the world of finance.
Credit Suisse is not opposed to this, however, adding that it would borrow up to 50 billion Swiss Francs ($53.7 billion) from the bank to address its liquidity crisis. The Swiss national bank is in the position and in the desire to lend a helping hand.
Credit Suisse said in a statement regarding its current financial crisis and its choice to accept the loan from the Swiss National Bank that it would “pre-emptively strengthen its liquidity,” which would strengthen the bank’s “core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs.”