Credit Suisse (video screenshot)
(AP NEWS) – Credit Suisse shares surged Thursday after the Swiss central bank agreed to loan the bank up to 50 billion francs ($54 billion) to bolster confidence in the country’s second-biggest lender following the collapse of two U.S. banks.
Credit Suisse announced the agreement before the Swiss stock market opened, sending shares up as much as 33% before they settled around a 17% gain, to 2 francs ($2.15), in late afternoon trading. That was a massive turnaround from a day earlier, when news that the bank’s biggest shareholder would not inject more money into Credit Suisse sent its shares tumbling 30%. The plunge in price dragged down other European banks and deepened concerns about the international financial system. European banking stocks also rose modestly Thursday.
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The Swiss National Bank said Wednesday that it was prepared to back Credit Suisse because it meets the higher financial requirements imposed on “systemically important banks,” adding that the problems at some U.S. banks don’t “pose a direct risk of contagion” to Switzerland.
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