Swiss government to meet Thursday on Credit Suisse

Swiss government to meet Thursday on Credit Suisse

GENEVA, SWITZERLAND — The Swiss government will hold a special meeting on Thursday to discuss the situation at Credit Suisse, a day after shares in the country’s second-biggest bank plunged to record lows.

The turbulence around the Swiss banking giant spurred the seven-member Federal Council to schedule a special meeting a day ahead of its next regular gathering on Friday, the Swiss news agency ATS reported, citing sources close to the government.

It was not clear whether decisions would be taken at Thursday’s meeting, ATS said.

The Federal Chancellery in Bern did not immediately respond when contacted by AFP.

The Zurich-based lender’s share price plunged by as much as 30 per cent Wednesday to a record low of 1.55 Swiss francs amid concerns of a global banking crisis.

Before the Swiss stock exchange reopened, Credit Suisse announced that it would borrow up to 50 billion Swiss francs ($53.7 billion) from the Swiss central bank to reinforce the group.

That announcement appeared to calm market fears, with the bank seeing its share price open more than 30 per cent higher Thursday.

At 1020 GMT, Credit Suisse shares were up 23 per cent at 2.09 francs.

Credit Suisse is one of 30 Global Systemically Important Banks considered to be so important to the financial system that they cannot be allowed to go bust.


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