Explainer: How did Credit Suisse get to crisis point?

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Explainer: How did Credit Suisse get to crisis point?

Credit Suisse said on Thursday it would borrow up to $54 billion from the Swiss central bank to shore up liquidity after a slump in its shares and bonds intensified fears about a global banking crisis. Analysts said they think that might not be enough.

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What events led to the recent share slump?

A string of scandals over many years, top management changes, multi-billion dollar losses and an uninspiring strategy can be blamed for the mess that the 167-year-old Swiss lender now finds itself in.

The sell-off in Credit Suisse’s shares began in 2021, triggered by losses associated with the collapse of investment fund Archegos and Greensill Capital.

In January 2022, Antonio Horta-Osorio resigned as chairman for breaching COVID-19 rules, just eight months after he was hired to fix the ailing bank.

In July, new CEO and restructuring expert Ulrich Koerner unveiled a strategic review - but failed to win over investors.

An unsubstantiated rumor on an impending failure of the bank in the autumn sent customers fleeing.

Credit Suisse confirmed last month that clients had pulled 110 billion Swiss francs of funds in the fourth quarter while the bank suffered its biggest

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