Credit Suisse loses almost a billion euros in one day – Banks and Finance

Credit Suisse loses almost a billion euros in one day – Banks and Finance

Credit Suisse lost nearly a billion Swiss francs in just one session. The Zurich giant saw its market capitalization fall from 10,328.24 million Swiss francs (10,497.2 million euros at current exchange rates) to 9,369.5 million francs, down 957.85 million Swiss francs (974.42 million euros).

The bank – which is in the middle of a restructuring plan – renewed again its historical lows for the second session in a row, touching 2.97 Swiss francs, having ended the day in the meantime with relief, but nevertheless, with a decline of 4.16% for the Swiss franc 3.01,.

And the stocks fell for ten consecutive days, in the worst sequence of losses since 2011, as they lost 27% in value since the beginning of the year (82%).

Credit Suisse’s stock market performance was affected by the news that its “core” business, ie wealth management, was losing money and clients to competitors. In addition, the bonds were sanctioned by the fact that the sale of Apollo Global Management’s secured capital financial products – as part of a restructuring plan – was poorly received by analysts, who criticized the lack of details about this agreement.

Within the scope of this “strategic” plan, the bank will increase the capital by 4 billion francs (4.06 billion euros), with the implementation of the first operation for institutional investors, after which the Saudi National Bank will acquire 9.9% of the capital of the Zurich Financial Institution, as expected.

In addition, from Monday until December 6, the subscription rights are being negotiated for the Bank’s shareholders who wish to purchase new shares, in order to complete the capital increase. The bank expects to raise approximately 2.24 billion Swiss francs (2.27 billion euros).

See also  Queues at the reopening of shopping malls in Greater Lisbon

By Andrea Hargraves

"Wannabe internet buff. Future teen idol. Hardcore zombie guru. Gamer. Avid creator. Entrepreneur. Bacon ninja."