Swiss National Bank monitoring Credit Suisse situation – Maechler
2022.10.05 13:49
© Reuters. FILE PHOTO: Andrea Maechler, governing board member of the Swiss National Bank (SNB) makes a speech during a presentation of the Swiss Economic Institute (KOF) in Zurich, Switzerland October 5, 2022. REUTERS/Arnd Wiegmann/File Photo
ZURICH (Reuters) – The Swiss National Bank (SNB) is following the situation at Credit Suisse closely, SNB Governing Board member Andrea Maechler told Reuters on Wednesday.
Switzerland’s second-biggest bank saw its shares slide by as much as 11.5% and its bonds hit record lows on Monday, before clawing back some of the losses, amid concerns about its ability to restructure its business without asking investors for more money.
“We are monitoring the situation,” Maechler said on the sidelines of an event in Zurich. “They are working on a strategy due to come out at the end of October.”
The SNB has declined to comment in the past about Credit Suisse, which has said it has a strong capital base and liquidity. It is due to announce details of a restructuring plan along with third-quarter results on Oct. 27.
In July, Credit Suisse announced its second strategy review in a year and replaced its chief executive, bringing in restructuring expert Ulrich Koerner to prune its investment banking arm and cut more than $1 billion in costs.
The bank is considering measures to scale back its investment bank into a “capital-light, advisory-led” business, and is evaluating strategic options for the securitised products business, Credit Suisse has said.
