Credit Suisse Borrows $53 Billion From Swiss Central Bank After Shares Pummelled
Credit Suisse has taken Switzerland’s central bank up on its offer to borrow up to 50 billion Swiss Francs ($53.7 billion) after the Swiss National Bank (SNB) vowed to grant it a liquidity lifeline “if necessary.”
In a statement, Credit Suisse said it was taking “decisive action to pre-emptively strengthen liquidity” after shares of the Swiss lender plunged by much as 30 percent on Wednesday, exacerbating fears that a global financial crisis is on the horizon.
The bank said it intends to exercise its option to borrow up to 50 billion Swiss Francs from the SNB under a covered loan facility as well as a short-term liquidity facility, which are fully collateralized by high-quality assets….