Credit Suisse shares drop as concerns mount over the financial health of the Swiss bank
The Swiss bank's shares plunged more than 10%, after the bank's president failed to reassure investors - but later rebounded.
Chief Executive Ulrich Koerner insisted last week in a note to employees that Credit Suisse's financial position is strong.
It comes ahead of the restructuring plan due when the bank announces results at the end of October.
Sources close to the bank confirmed a report in the Financial Times that Swiss bank executives spent most of the weekend trying to placate key stakeholders about its financial strength.
A spokesperson for Credit Suisse declined to comment.
In a note last week, Mr. Corner told employees: “I trust you are not confusing our daily share price performance with the bank's strong capital base and liquidity position."
He said there were "many inaccurate statements made" in the media, but urged staff to stay committed ahead of the turnaround plan, which will be revealed on October 27.
“We are reshaping Credit Suisse for a sustainable long-term future - with great potential for value creation.
"I am confident we have what it takes to succeed."
Credit Suisse shares have fallen over the past year amid concerns about the bank's financial position.
In July, the bank announced a strategy review and replaced its chief executive, Thomas Gotstein, with asset management expert Korner.
Credit Suisse is headquartered in London and employs 5,500 people in the UK.
According to Reuters, the Bank of England is monitoring the situation together with the Swiss regulator, FINMA.
The CEO of Credit Suisse insists that the bank is as strong and stable as the Matterhorn. The problem is that from the outside we don't look that way - and perceptions matter.
The bank was hit by the scam. It lost billions due to the collapse of Archegos Capital Management, took further damage from lending to failed finance company Greensill Capital, and was fined hundreds of millions for its involvement in a loan scandal in Mozambique.
Ulrich Koerner was brought in earlier this year to implement an overhaul of the investment banking unit. He is due to unveil his plans later this month.
But market moves suggest that some investors believe the bank is running out of cash.
Korner claims all is well - and has written to Credit Suisse employees to reassure them of the truth. The problem is that that same memo appears to have fueled more speculation about the health of the company.
In a note last week, Mr. Corner told employees: “I trust you are not confusing our daily share price performance with the bank's strong capital base and liquidity position."
He said there were "many inaccurate statements made" in the media, but urged staff to stay committed ahead of the turnaround plan, which will be revealed on October 27.
“We are reshaping Credit Suisse for a sustainable long-term future - with great potential for value creation.
"I am confident we have what it takes to succeed."
Credit Suisse shares have fallen over the past year amid concerns about the bank's financial position.
In July, the bank announced a strategy review and replaced its chief executive, Thomas Gotstein, with asset management expert Korner.
Credit Suisse is headquartered in London and employs 5,500 people in the UK.
According to Reuters, the Bank of England is monitoring the situation together with the Swiss regulator, FINMA.
The CEO of Credit Suisse insists that the bank is as strong and stable as the Matterhorn. The problem is that from the outside we don't look that way - and perceptions matter.
The bank was hit by the scam. It lost billions due to the collapse of Archegos Capital Management, took further damage from lending to failed finance company Greensill Capital, and was fined hundreds of millions for its involvement in a loan scandal in Mozambique.
Ulrich Koerner was brought in earlier this year to implement an overhaul of the investment banking unit. He is due to unveil his plans later this month.
But market moves suggest that some investors believe the bank is running out of cash.
Korner claims all is well - and has written to Credit Suisse employees to reassure them of the truth. The problem is that that same memo appears to have fueled more speculation about the health of the company.
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