After a massive fall in prices, the major Swiss bank is struggling with a loss of confidence in the financial markets.
(Photo: imago images/IP3press)
Frankfurt When the boss of a large bank has to reassure them that they are financially stable, it is usually not good news. On Wednesday, Ulrich Körner, the man at the helm of Credit Suisse, felt compelled to take such a verbal action of support. Critical statements from the largest shareholder, the Saudi National Bank, had previously caused the price to fall by up to 31 percent.
At the same time, the costs of derivatives, which investors can use to protect themselves against the default of Credit Suisse bonds, have skyrocketed. These papers, known as CDS in the technical jargon, are one of the most important barometers for trust in a bank.
Körner also said that the Credit Suisse case cannot be compared to the collapse of California’s Silicon Valley bank, which has been shaking markets around the world for the past week.
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