Is Credit Suisse Failing? Bank Looking to Raise Capital Following String of Losses

After suffering a number of financial losses over the past several years, Credit Suisse is apparently forced to explore new avenues of raising capital in an effort to boost its financial position.

According to Reuters which cited individuals familiar with the matter, Credit Suisse is looking into boosting its financial buffer by raising over $1 billion in capital, to help recover from billions of dollars in losses last year and a number of financially straining legal problems. To increase its cash position, the bank is mulling selling shares to its wealthier existing shareholders, but isn’t foregoing the option of selling shares to all of its investors.

The people revealed Credit Suisse may also consider selling its asset management division, but added that the bank has yet to finalize any of the potential options. And, if such a transaction was to take place, it wouldn’t occur until sometime in the second half of the year. However, according to an official statement from the bank, no such moves are currently on the table, despite after suffering substantial financial losses in the first quarter of 2022.

Credit Suisse has suffered a number of setbacks over the past year, particularly following billions of dollars in financial losses stemming from poorly executed investments. Making matters worse are multiple legal cases launched against the Swiss bank including a Bermuda court case that could end up costing upwards of $600 million.


Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Gold/Silver: People Can Still Lose Money In This Bull Market!? | Rick Rule

He Said $300 Silver!? | Peter Krauth

Dollar Will Collapse, Gold and Silver Are the Only Safe Havens | Jim Rogers

Recommended

Tsunami Warnings Spread As Largest Quake Since 2011 Hits Russia

Northern Superior Intersects 1.75 g/t Gold Over 65.0 Metres At Philibert

Related News

Inflation Or Depression: Credit Suisse To Secure $54 Billion From Swiss Central Bank

Credit Suisse (NYSE: CS) has announced that it will borrow up to 50 billion Swiss...

Thursday, March 16, 2023, 02:11:00 PM

Credit Suisse Announces New Group CEO After Disappointing Q2 Performance

Credit Suisse Group AG (SWX: CSGN) announced on Wednesday that Thomas Gottstein will be stepping...

Saturday, July 30, 2022, 05:05:00 PM

Credit Suisse Tumbles As Largest Investor Refuses To Provide Further Support

Credit Suisse (NYSE: CS) is currently attempting to recover from an over 20% tumble at...

Wednesday, March 15, 2023, 11:17:41 AM

Now $3.2 Billion: Credit Suisse Price Tag Keeps Rising For UBS

UBS agreed to buy beleaguered rival Credit Suisse for 3 billion Swiss francs ($3.2 billion)...

Monday, March 20, 2023, 10:08:06 AM

Is Deutsche Bank Next? Shares Plummet As Default Swaps Surge To Record High

Deutsche Bank’s (NYSE: DB) shares have tumbled 8% in pre-market trading to $8.85 after default...

Friday, March 24, 2023, 09:11:33 AM