Credit Suisse shares soar over 18% on Swiss National Bank loan announcement
Posted 10 days ago
From WWW.CNBC.COM
Credit Suisse shares soared more than 30% at Thursday's market open after the bank said it will borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank.
The Swiss-listed stock's rally cooled slightly during the day's trading, but the shares were still up 18.8% as markets closed in the afternoon.
The embattled lender announced late Wednesday that it would exercise its option to borrow from the Swiss central bank under a covered loan facility and a short-term liquidity facility.
The Swiss National Bank and the Swiss Financial Market Supervisory Authority said in a statement Wednesday that Credit Suisse "meets the capital and liquidity requirements imposed on systemically important banks."
Credit Suisse also offered to buy back around 3 billion francs' worth of debt, relating to 10 U. S. dollar-denominated senior debt securities and four euro-denominated senior debt securities.
"These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders," Credit Suisse CEO Ulrich Koerner said in the release Wednesday.... (Read more)
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