A Credit Suisse bank sign is seen on a branch in Geneva on Wednesday. Photo: Fabrice Coffrini/AFP via Getty Images
Swiss credit will borrow up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank under a covered loan facility as well as a short-term liquidity facility, the company said on Wednesday.
Why is this important: Credit Suisse is one of 30 global financial institutions that the International Financial Stability Board has designated as systemically important — it’s too big to fail, for Felix Salmon of Axios.
Driving the news: Credit Suisse’s largest shareholder, Saudi National Bank, said earlier on Wednesday it could no longer provide capital due to regulations and added that it could not own more than 10% of the bank.
Details: The protections provided by the Swiss central bank “are fully backed by high-quality assets”, according to a statement from Credit Suisse.
- “Credit Suisse is also announcing offers from Credit Suisse International to repurchase certain senior debt securities of OpCo for cash consideration of up to approximately CHF 3 billion,” the statement added.
What they say : Ulrich Koerner, CEO of Credit Suisse, said in A declaration that the measures “demonstrate decisive action to strengthen ‘the bank’ as we continue our strategic transformation.”
thought bubblevia Dan Primack of Axios: What started a week ago like california bank trying to sell stocks has turned into a global crisis of confidence in banks, even though Credit Suisse was in trouble long before most people heard of it SVB.
Editor’s note: This article has been updated with additional details throughout.