Credit Suisse shares drop to record high after troubled lender starts probing shareholders for cash
Shares of Credit Suisse fell to a record high after the troubled lender began canvassing shareholders for cash.
The scandal-ridden Swiss bank is looking to strengthen its balance sheet.
Troubled: The Swiss bank, which has been embroiled in scandals, seeks to strengthen its balance sheet
Shares fell to an all-time low of 4.07 Swiss francs yesterday, a fall of 13.66%.
Credit Suisse is looking at options for its investment bank, which could involve splitting it up and selling the most profitable parts. A radical option is to abandon most of its operations in the United States.
Christian Schmidiger, an analyst at ZKB, said Credit Suisse needed an additional £3.7bn, adding it would mean “significant dilution for existing shareholders” as investors inject cash.
The bank’s reputation has been marred by deadly scandals, including corporate espionage and its investment in the collapse of Greensill Capital.