Switzerland-listed shares fell 7.8% in European hours to 3.67 francs ($3.71) after falling over 12% at the start of the session, APA-economics reports.
Investors are concerned about the overall health of the bank as it finalizes a restructuring plan that is due to be announced on October 27
On Friday there was a sharp rise in spreads on the bank’s credit default swaps (CDS), which protect investors if it defaults on their debt.
According to a Financial Times report, senior executives spent the weekend convincing major clients of the bank’s liquidity and capitalization
Credit Suisse shares are down 60% year-to-date Investors are angry about the collapse of the bank similar to Lehman Brothers, the investment bank whose bankruptcy in 2008 heralded the beginning of the financial crisis.
In an internal memo available to insiders, Credit Suisse boss Ulrich Krner described the next few weeks as a “critical moment for the entire organization”.
“No doubt there will be more noise in the markets and in the press by the end of October,” he said in a note to bank staff. “All I can say to you is stay disciplined and stay as close to your clients and colleagues as you have always been.”
“I trust that you will not confuse our daily share price performance with the bank’s strong capital base and liquidity position,” added Krner.
Javid Azimov
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