Swiss Government Moves To Stabilize Credit Suisse Bank

The Government of Switzerland is holding emergency meetings to discuss ways to stabilize embattled bank Credit Suisse Group (CS).

Credit Suisse’s stock fell more than 20% and trading in the security was halted after its largest shareholder, Saudi National Bank, said it could not inject any more money into the lender.

The bank’s executives and government officials are now talking about options that range from a public statement of support to a potential liquidity backstop, according to multiple media reports.

Other options being considered include a possible merger with larger Swiss bank UBS Group (UBS).

But so far none of these measures have been taken.

Credit Suisse’s stock is now trading at a record low and the cost to insure its debt is at crisis levels, say senior executives who have asked the Swiss central bank and regulators for public statements of support.

The turmoil at Credit Suisse has pulled all European bank stocks lower as investors run from the banking sector amid growing signs of trouble.

Several regional banks in the U.S. have failed in recent days, notably Silicon Valley Bank (SIVB).

Credit Suisse, Switzerland’s second biggest bank, has been hammered over the last few years by a series of scandals, leadership changes, and legal troubles. The lender lost $7.9 billion U.S. last year, wiping out a decade’s worth of profits.

Clients of Credit Suisse pulled more than $100 billion U.S. of assets from the bank in the final three months of last year as concerns mounted about its financial stability.

Credit Suisse’s stock is down 73% over the last 12 months at trading at $2.16 U.S. per share.