Economy: Credit Suisse stock slides amid concerns over financial health
Shares of Swiss bank Credit Suisse plunged on Monday morning as the concerns regarding the financial health of the bank rose. Its shares fell by about 10%, before recovering slightly, after the bank's boss failed to reassure investors.
The chief executive Ulrich Koerner assured staff in a memo last week that the financial health of the bank is strong. In the memo, Koerner said, “I trust that you are not confusing our day-to-day stock price performance with the strong capital base and liquidity position of the bank.”
These concerns comes ahead of a restructuring plan due when the bank reports results at the end of October. Ulrich Koerner added in the memo, “We are in the process of reshaping Credit Suisse for a long-term, sustainable future - with significant potential for value creation.” In July, the bank announced a strategy review and replaced its chief executive, Thomas Gottstein, with Mr Koerner, an asset management expert.
Credit Suisse currently employees 5500 people in the UK. According to Reuters, the Bank of England is monitoring the situation together with the Swiss regulator, FINMA. However, Bank of England declined to comment on the situation.