Credit Suisse shares slide 10% as the shine of its rescue package wears off
- Credit Suisse stock slid almost 10% Friday, pulling back after it jumped as much as 20% the previous day.
- The declines came even after the SNB agreed to loan $54 billion to the Swiss banking giant.
Credit Suisse shares resumed declines Friday, losing hold of the previous day's rally in a sign investors aren't convinced the embattled Swiss banking giant isn't out of the woods yet.
The lender's Zurich-listed shares were down 9.9% at 1.82 Swiss francs ($1.96) as of 11:20 a.m. ET. US-listed shares in the financial giant were 6.0% lower at $2.03, after opening premarket trading at $2.25.
Credit Suisse is facing a pile of financial troubles, and investors are concerned it may default on its debt. DBRS Morningstar cut Credit Suisse's credit score to BBB on Thursday.
The Swiss National Bank offered the lender the lifeline of a $54 billion loan on Thursday. Shares jumped almost 20% in the wake of the news, rallying from a record low Wednesday, which came after the bank's biggest backer said there would be no more support coming.
The Swiss government is drawing up plans for a forced takeover of Credit Suisse by its bigger rival UBS, but both banks oppose the plan, Bloomberg reported, citing people with knowledge of the matter.
The past week has been turbulent time for the global banking sector, after Silicon Valley Bank, Signature Bank, and Silvergate Capital all folded in recent days.
- A 53-year-old longevity researcher says his 'biological age' is a decade younger thanks to 4 daily habits — but the science behind them is mixed
- OnePlus Nord CE 3 leaks ahead of launch – specs, expected launch date and more
- New CEO of TCS Krithivasan gets a thumbs up from analysts who are betting on his experience & leadership skills
- Sennheiser launches HD 660S2 headphones at ₹54,990 in India
- 'Consistent with dignity, socially acceptable', SC mulls panel to examine less painful method of execution
- Reliance Jio's True 5G now available in over 406 cities
- Brent crude oil prices remain under pressure on tensions that risks in global banking sector may spark a recession worldwide
- Ad-free videos to background play, here’s everything you get with YouTube Premium