The financial markets are about to take another jolt as international banking giant Credit Suisse announced that it will borrow $54 billion from the Swiss central bank in an effort to stabilize itself after years of mismanagement, CNN reports.
Calling the move a “decisive action to pre-emptively strengthen its liquidity,” the bank said in a statement, adding, “This additional liquidity would support Credit Suisse’s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs.”
Credit Suisse lost about 30% of its stock price Wednesday, and the move by the Swiss National Bank in the middle of the night could reassure investors so there’s no run on Credit Suisse or other Swiss banks to pull cash out, as there was with California’s SVB.