aprott
- Credit Suisse (NYSE:CS) shares have dropped 8.00% in Monday early afternoon trading in Zurich and the bank's ADSs have slid 5.9% in premarket U.S. trading after senior company executives called counterparties, large clients and investors over the weekend to reassure them about its liquidity and capital position.
- The senior managers took to the phones after the bank's credit default swaps, which offer investors insurance against a company defaulting, jumped on Friday, the Financial Times reported, citing a Credit Suisse (CS) executive involved in the discussions.
- The Swiss bank has denied recent media reports that it has approached investors about a possible capital raise, as the bank wanted to avoid that scenario with its stock price at record lows.
- Credit Suisse (CS) shares touched as low as CHF 3.52 (US$3.56) in Zurich Monday. YTD, its shares have plunged ~60% as the bank struggles to turn itself around after a series of scandals and missteps. In the U.S., its ADSs traded at $3.71 at 7:13 AM ET, falling from Friday's close of $3.92
- The bank has said it would update investors on its strategic review when it reports Q3 earnings on Oct. 27. In September, the FT reported that the company is planning on splitting its investment bank into three units.