Current:Home > FinanceCredit Suisse shares soar after the bank secures a $54 billion lifeline -BrightFutureFinance
Credit Suisse shares soar after the bank secures a $54 billion lifeline
View
Date:2025-04-12 23:25:41
Shares of Credit Suisse jumped Thursday after saying it would borrow up to $54 billion from Switzerland's central bank, an emergency step intended to prop up investor confidence in the troubled European bank.
Credit Suisse shares had plunged on Wednesday, prompting stock markets to fall in the U.S. and around the world, amid rising concerns about the stability of the global banking system after U.S. regulators were forced to rescue Silicon Valley Bank and Signature Bank on Sunday.
Credit Suisse's troubles, however, were distinct from the two collapsed U.S. lenders. The European bank had already been reeling after a succession of scandals and poor decisions that several CEOs have failed to address over several years.
The lender also recently acknowledged there had been potential problems with the way it reported its financial position as recently as last year, and its shares then plunged on Wednesday after the chairman of its biggest shareholder, Saudi National Bank, said it would not increase its nearly 10% investment.
But Credit Suisse found a reprieve for now after saying late on Wednesday it would borrow up to 50 billion Swiss francs, or about $54 billion, from the Swiss National Bank after the central bank had earlier said it was willing to provide support if required.
Shares of the Swiss lender rose more than 20% in European trading.
Caution persists about global banks
Credit Suisse's woes come as the failures of Silicon Valley Bank and Signature Bank have raised concerns about the financial health of the U.S. banking system despite assurances from President Biden and administration officials.
U.S. Treasury Secretary Janet Yellen will testify before the Senate Finance Committee later on Thursday and is set to say the U.S. banking system is "sound" and to assure depositors their money is safe, according to prepared remarks.
Credit Suisses's plunge on Wednesday had sparked fears that the concerns about the U.S. financial system were spreading to other parts of the world.
Although Credit Suisse's shares are trading at a fraction of where they once were, it's still considered one of just a select number of banks that are considered to be important to the global financial system given its worldwide presence and its deep involvement in international trading.
veryGood! (2941)
Related
- Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
- Mark Zuckerberg's first tweet in over a decade is playful jab at Elon Musk's Twitter
- The Sun Belt is making a big play for the hot electric vehicle market
- At COP26, nations strike a climate deal with coal compromise
- Residents worried after ceiling cracks appear following reroofing works at Jalan Tenaga HDB blocks
- Satellites reveal the secrets of water-guzzling farms in California
- Taylor Swift and Joe Alwyn Break Up: Relive Their Enchanting 6-Year Love Story
- Check Out the Most Surprising Celeb Transformations of the Week
- 'Most Whopper
- The 2021 Hurricane Season Wrapped
Ranking
- EU countries double down on a halt to Syrian asylum claims but will not yet send people back
- Nick Cannon Speaks Now About Desire to Have Baby No. 13 With Taylor Swift
- Plant that makes you feel electrocuted and set on fire at the same time introduced to U.K. Poison Garden
- Intense monsoon rains lash Pakistan, with flooding and landslides blamed for at least 50 deaths
- Former Syrian official arrested in California who oversaw prison charged with torture
- Volunteers are growing oyster gardens to help restore reefs
- Pregnant Peta Murgatroyd and Maks Chmerkovskiy Share Glimpse Inside Tropical Baby Moon
- At least 51 people killed in road accident in western Kenya, 32 injured, police and Red Cross say
Recommendation
Paula Abdul settles lawsuit with former 'So You Think You Can Dance' co
Millie Bobby Brown Announces Engagement to Jake Bongiovi
These 4 charts explain why the stakes are so high at the U.N. climate summit
Biden says he worries that cutting oil production too fast will hurt working people
Rams vs. 49ers highlights: LA wins rainy defensive struggle in key divisional game
Russia won't say where Wagner boss Yevgeny Prigozhin is, but photos purportedly show his raided home
Find Out if Sex/Life Is Getting a 3rd Season
Intense monsoon rains lash Pakistan, with flooding and landslides blamed for at least 50 deaths