“TOO BIG TO FAIL”
Amid the market panic, Credit Suisse chairman Axel Lehmann insisted at the Financial Sector Conference in Saudi Arabia that the bank did not need government assistance, saying it “isn’t a topic”.
“We have strong capital ratios, a strong balance sheet,” Lehmann said, adding: “We already took the medicine,” referring to the bank’s drastic restructuring plan revealed in October.
Credit Suisse is one of 30 banks globally deemed too big to fail, forcing it to set aside more cash to weather a crisis.
The bank and financial authorities remained quiet about the share fall.
But citing three anonymous sources, the Financial Times newspaper reported that Credit Suisse had appealed to Switzerland’s central bank and its financial regulator for “a show of support”.
Analysts warned of mounting concerns over the bank’s viability and the impact on the larger banking sector, as shares of other lenders sank on Wednesday after a rebound the day before.
“Where one big shareholder goes, others may follow. Credit Suisse now has to come with a concrete plan to stop outflows, and do it fast,” IG analyst Chris Beauchamp told AFP.
Neil Wilson, chief market analyst at trading firm Finalto, agreed.
“If Credit Suisse were to run into serious existential trouble, we are in a whole other world of pain. It really is too big to fail.”
