Credit Suisse Borrows $54 Billion To Shore Up Liquidity After Shares Touch Record Low

Credit Suisse Borrows $54 Billion To Shore Up Liquidity After Shares Touch Record Low

Share to Linkedin Credit Suisse on Thursday said it is exercising an option to borrow $53. 75 billion (CHF 50 billion) from the Swiss National Bank, as it looks to stave off concerns about its liquidity a day after the crisis-ridden bank's stock plunged to a record low. A sign of Credit Suisse bank is seen on the branch building in Geneva. In a press release, Credit Suisse said it was taking this action to "pre-emptively strengthen its liquidity" and the funds were being borrowed from the Swiss central bank under its covered loan facility and a short-term liquidity facility. The borrowing comes a day after the Swiss National Bank said it was ready to provide Credit Suisse with liquidity "if necessary," while adding that the bank met all "capital and liquidity requirements imposed on systemically important banks." In an effort to lower interest expense, Credit Suisse also announced it will open an offer to buy back debt securities worth around $3 billion—including 10 U. S. dollar bonds worth $2. 5 billion and four Euro bonds worth $530 million (€500 million). The bank's CEO Ulrich Koerner said the bank was taking "decisive action" as it continues with its strategic transformation