Credit Suisse has experienced a loss of confidence in the financial institution’s health following a significant drop in its shares’ value this week. Over the past five days, Credit Suisse shares have fallen 24.34% against the U.S. dollar, eroding trust amid fears about the global banking system. On Wednesday at around 9 p.m. (ET), Credit Suisse announced that it was strengthening its liquidity by borrowing 50 billion Swiss francs ($54 billion) from the Swiss National Bank (SNB). As concerns about the world’s banking system continue to spread, bailout measures are starting to emerge in the U.S. and abroad.
Emergency Measures to Stabilize Global Banking System Emerge as Credit Suisse and Other Banks Face Uncertainty
Credit Suisse’s stock hit a record low on Wednesday after the Saudi National Bank declined to assist the Zürich, Switzerland-based bank. The bank’s troubles have fueled fears of bank contagion after three major U.S. banks collapsed last week. Some market strategists predict that Credit Suisse will be the next to fail, and the actual value of Credit Suisse’s share price has been called into question. After a tumultuous day on Wednesday, Swiss officials announced that they were working to stabilize the financial…
