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Credit Suisse Shares Slump Massively, Megabank Borrows $50 Billion Amid Crisis

All does not appear to be well for Switzerland -based megabank Credit Suisse as its shares slumped 30 per cent on Wednesday, provoking a wave of uncertainty across the global banking universe.

The Swiss national bank is in the position and mood to give a rescuing hand, though and Credit Suisse is not opposed to that, noting that would borrow up to 50 billion Swiss Francs ($53.7 billion) from the bank to counteract its liquidity crunch.

In a statement on its current crisis and the decision to take the loan from the Swiss National Bank, Credit Suisse noted that it would “pre-emptively strengthen its liquidity,” which would correspondingly strengthen the bank’s “core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs.”

Additionally, Credit Suisse noted that it is spending billions of dollars to repurchase its own debts in order to manage its liabilities and expenses on interest payments.

Founded in 1856, Credit Suisse has often been described as a globally important bank – a fact that has never been debated given the brand age, spread, and assets, spanning continents. Such is the significance of the bank’s latest crisis and shares slump that it has spilt into banks like BNP Paribas, Societe Generale, Commerzbank and Deutsche Bank, which have recorded shares slump of between 8% and 12%.

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