Credit Suisse shares hit by worries over financial health

Shares in Credit Suisse plunged on Monday as fears mount over the financial health of the Swiss bank.

Its shares fell by more than 10%, after the bank’s boss failed to reassure investors – but later bounced back.

Last week, chief executive Ulrich Koerner insisted in a memo to staff that Credit Suisse’s financial position was solid.

It comes ahead of a restructuring plan due when the bank reports results at the end of October.

Sources close to the bank confirmed a report in the Financial Times that executives at the Swiss bank spent much of the weekend seeking to calm key stakeholders about its financial strength.

A Credit Suisse spokesperson refused to comment.

  • Credit Suisse guilty over money-laundering charges
  • Credit Suisse denies wrongdoing after data leak

In last week’s memo, Mr Koerner told staff: “I trust that you are not confusing our day-to-day stock price performance with the strong capital base and liquidity position of the bank.”

He said there were “many factually inaccurate statements being made” in the media, but urged staff to stay committed ahead of the transformation plan, which will be unveiled on 27 October.

-BBC

%d bloggers like this: