This Thursday, March 16, Credit Suisse announced a loan of 54 billion dollars to the Swiss National Bank. This after its shares plummeted 30% in the last week.
The legendary Swiss bank founded in 1856, is going through reputational scandals, collapsed venture firms and the financial market crisis caused by the Silicon Valley Bank (SVB) bankruptcy last week.
In a press release, Credit Suisse said the loan money would help “support its core businesses and customers as the bank takes steps to create a simpler institution centered around the needs of users.”
With the Swiss National Bank loan, Credit Suisse said it had bought back a large amount of its debt to better manage liabilities.
Credit Suisse is going through its worst moments
The legendary Zurich-based bank is in the throes of reputational scandals, collapsed venture firms and the financial market crisis sparked by the failure of Silicon Valley Bank (SVB) last week. Its shares have lost 30% of their value since the middle of last week, but it has been two years of millions in losses.
In 2021, Credit Suisse reported losses of 1.6 billion euros. These increased fivefold in 2022 to 7.4 billion euros. The bank also suffered last year the withdrawal of liquidity for 126,000 million euros.
In addition to Credit Suisse’s financial problems, there are several layoffs and resignations of top executives due to reputational crises. In January 2022, the then president of the entity, Antonio Horta-Osorio, resigned for having attended a sporting event when he was supposedly in quarantine during the pandemic.
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