Summary:
- Saudis fold – refuse to throw any more money at Credit Suisse
- Credit Suisse stock hits record low
- Credit Suisse 1Y CDS explodes as counterparty risk hedging soars
- Credit Suisse execs urged a “show of confidence” from the Swiss National Bank
- ECB quantifying exposures to Credit Suisse
- US Treasury monitoring situation, talking with other regulators
- Fed working with UST to quantify exposures
- One major govt is pressuring Swiss to intervene
- Systemic risk threat spreads globally
- Swiss authorities seeking to stabilize bank
- Swiss National Bank and Finma issue statement of support
- Credit Suisse said it’s planning to borrow from the Swiss National Bank up to CHF50 billion under a covered loan facility.
“For the LORD your God will bless you as he has promised, and you will lend to many nations but will borrow from none. You will rule over many nations but none will rule over you.” Deut. 15:6
Update (21:00ET): And so, the “bailout” arrives just a few hours before the Europe open, Credit Suisse said it’s planning to borrow from the Swiss National Bank up to CHF50 billion ($54 billion) under a covered loan facility which is “fully collateralized by high quality assets”. It wasn’t immediately clear what high quality assets CS has left to pledge but in a time of BTFP, we are confident they found something.
The bank also announced offers by Credit Suisse International to repurchase certain OpCo senior debt securities for cash of up to about CHF3 billion, which will help the bank pick up a few pennies in bond discount, even as it faces tens of billions in deposit flight.
Here is the full press release:
Read the entire article HERE
