Credit Suisse shares sink to record low after troubled lender starts sounding out shareholders for cash
Credit Suisse shares sank to a record low after the troubled lender started sounding out shareholders for cash.
The Swiss bank, which has been embroiled in scandals, is seeking to bolster its balance sheet.
Troubled: The Swiss bank, which has been embroiled in scandals, is seeking to bolster its balance sheet
Shares slid to an all-time low of 4.07 Swiss francs yesterday, a fall of 13.66 per cent.
Credit Suisse is reviewing options for its investment bank, which could involve splitting it up and selling the most profitable parts. One drastic option is to ditch most of its operations in the US.
Christian Schmidiger, an analyst at ZKB, said Credit Suisse needed up to an extra £3.7billion, adding that this would mean ‘a significant dilution for the existing shareholders’ as investors pump money in.
The bank’s reputation has been battered by bruising scandals, including corporate spying and its investment in the collapsed Greensill Capital.