World’s largest bank was on verge of financial collapse

Credit Suisse Bank, whose clients were Russian billionaires, were in the center of the financial storm. Moscow Times writes that the shares of the bank, the second largest assets in Switzerland and one of the largest in the world, are experiencing a collapse that has never been seen for its almost 170-year history: since the beginning of the year they have fallen by 60% (including 12% on Monday).

Some market participants are afraid that Credit Suisse will have to conduct a domain of shares to replenish capital. On September 23, Reuters reported that the bank was interested in the opinion of shareholders about a possible additional dopation. The Credit Suisse Investbank division is in a difficult financial situation, and the leadership considers options for its reorganization. It may include the division of investment bank into three parts, the creation of a “bad bank” for transferring problem assets, selling a profitable business and leaving the US market.

At the same time, the bank in Switzerland remains profitable, a strong brand remains among the global division of private banking services, although there were many rich Russians among its customers, whose assets are now frozen as a result of sanctions.

Over the past month, Credit Suisse shares have fallen by more than 25%, and on Friday the general director Ulrich Kerner sent a letter to employees in which he assured that the bank had enough capital. At the same time, he admitted that for the bank, which is preparing the reorganization, the “critical moment” has come. At the weekend managers, Credit Suisse called shareholders and customers, assuring that the financial situation of the bank is firmly, it has enough capital and liquidity, writes Financial Times with reference to bank employees.

Customers for the Blade Management of Credit Suisse were, in particular, Alisher Usmanov, Roman Abramovich, Victor Vekselberg, Oleg Deripaska, Andrei Melnichenko, Mikhail Fridman.