Possible Moves for Credit Suisse's Future
The report also suggested that other potential moves for Credit Suisse could include separating their Swiss unit and a possible merger with their larger Swiss competitor, UBS Group AG. However, it remains to be seen which of these steps, if any, will be implemented.
Pressure on Switzerland to Act Quickly
A source told Reuters that Switzerland is facing pressure from at least one major government to intervene quickly in Credit Suisse's situation. This comes after the Swiss bank led a rout of European bank stocks, with Credit Suisse shares dropping by as much as 30.8%.
BREAKING: Switzerland is holding discussions on potential measures to stabilize Credit Suisse ($CS).
— Paryte (@Parytecom) March 15, 2023
Credit Suisse's Impact on European Banking Index
The significant drop in Credit Suisse shares resulted in a 7% fall in the European banking index SX7P. Additionally, five-year credit default swaps (CDS) for the flagship Swiss bank reached a new record high, raising concerns about a broader threat to the financial system.
