SVB collapse – latest: Credit Suisse to borrow £44.5bn after crash amid fears of economic crisis
Credit Suisse will borrow up to £44.5bn from the Swiss National Bank to strengthen its liquidity, the lender said.
The troubled banking giant said it was taking decisive action to shore up its finances after its shares nosedived 30 per cent on Wednesday.
Shares in the Swiss bank plummeted after its top shareholder Saudi National Bank said it would not provide any further financial assistance. However, Swiss regulators announced that the country’s central bank would give Credit Suisse liquidity if needed, helping mitigate earlier concerns.
This comes after Wall Street expert Robert Kiyosaki, famed for predicting the Lehman Brothers’ failure, pegged Credit Suisse as the next major bank most likely to collapse.
The concerning outlook for the bank comes as SVB – whose Friday collapse sparked concerns of a financial crisis – is back open for business.
New CEO Tim Mayopoulos urged customers to return to the bank, saying it is now opening new accounts and making new loans. He served as CEO of Fannie Mae bringing it back to profitability after the 2008 financial crisis.
Six regional financial institutions remain under tight scrutiny but the response from regulators to protect depositors appears to have addressed market concerns.