The Swiss National Bank lends 50 billion francs to Credit Suisse
Credit Suisse shares rose more than 30% in pre-opening trading after the bank announced that it would take decisive action to enhance liquidity by using the option available to it to borrow up to 50 billion francs from the Swiss National Bank.
The bank’s shares rose 18.09% at 2.00 francs by 09:17 GMT.
The bank plans to buy back up to 3 billion francs of debt in a bid to boost liquidity and calm investors.
The moves – unprecedented for a major Swiss bank since the 2008 financial crisis – are the largest yet to shore up Credit Suisse’s finances.
The bank’s shares fell as much as 31% on Wednesday in Zurich trading, and its bonds fell to levels indicating deep financial distress, along with a global sell-off of bank stocks.
