According to ABC, a memo from the CEO to staff was released late on Friday. “I know it’s not easy to stay focused amid the many stories you read in the media, especially given the many factual errors that are made. That said, I hope you don’t confuse the day-to-day evolution of the listing with the bank’s solid capital base and liquidity position,” the note said.
The Financial Times said that a Credit Suisse executive denied reports that the bank had formally contacted investors about the possibility of raising capital and insisted they were trying to avoid such a move at a time when the bank’s share price is at record lows and borrowing costs are higher due to downgrades. The actions of Credit Suisse They have fallen by more than 50% this year.
For its part, Spreads on the bank’s credit default swaps (CDS), which offer investors protection against financial risks such as default, rose sharply on Friday., giving credence to the rumours. The rise comes after reports the Swiss lender is looking to raise capital, citing a note from its CEO Ulrich Koerner.
According to the Financial Times, the executive denied reports that the Swiss bank had formally contacted its investors about a possible capital increase, and insisted that Credit Suisse was “trying to avoid such a move at a time when where its share price is at record lows and borrowing costs have risen due to downgrades.
At this point, the market expects the bank to deny the rumors in the strongest possible way.
Source: Ambito
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