Shares of Credit Suisse (CS) are down 10% in European trading amid reports of growing capital
concerns at the Swiss bank.
Spreads of the bank’s credit default swaps (CDS), which provide investors with protection
against financial risks such as default, rose sharply last Friday (September 30).
Multiple media reports say the Swiss lender is trying to raise capital, while also engaging in
divestitures and asset sales.
Media reports surfaced over the weekend that Credit Suisse is also considering exiting the U.S.
market as its financial situation deteriorates.
However, the bank has so far refused to comment on its finances. In a written statement, the
Zurich-based bank said it will provide an update on an internal strategic review when it releases
its third-quarter results October 27.
So far this year, Credit Suisse’s stock has declined 60% to trade at $3.92 U.S. per share.
