Credit Suisse stock tumbled 7% today!
On concerns the troubled Swiss bank will raise billions of dollars by selling new shares.
Bloomberg late on Thursday reported Credit Suisse is sounding out investors about a capital increase as part of its latest effort to restructure.
Credit Suisse shares sink on worries about new cash call!@CreditSuisse stock tumbled 7%, on concerns the troubled Swiss bank will raise billions of dollars by selling new shares, via @business pic.twitter.com/extzYIXP5a
— The_Journalbiz (@the_journalbiz) September 23, 2022
Credit Suisse said it is premature to comment on potential outcomes before it announces its updated strategy on Oct. 27.
Credit Suisse wants to refocus its investment bank around its advisory business and shrink in markets trading, after posting three consecutive quarterly losses.
Deutsche Bank analysts in August calculated the bank needs at least $4.1 billion in fresh capital to fund the restructuring and grow its remaining businesses.
Credit Suisse has started sounding out investors for a capital hike for the fourth time in seven years as it attempts a radical overhaul of its investment bank, which could include exiting the U.S. market, sources told Reuters
Shares in Credit Suisse (CSGN.S) fell over 7% in early trade to a record low of 4.26 francs.