Exclusive: Credit Suisse will hold internal discussions this weekend on banking source scenarios

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  • Meetings attended by Teams reporting to the CFO – sources
  • The scenarios could change the future of Credit Suisse
  • Follow the $54 billion loan from the central bank

LONDON/ZURICH, March 17 (Reuters) – Credit Suisse AG ( CSGN.S ) will hold meetings over the weekend to assess scenarios for the bank as it struggles to regain market confidence, people with knowledge of the matter told Reuters on Friday.

The meetings involve teams that report to CFO Dixit Joshi, the people said. Executives are crunching the numbers and coming up with scenarios that could change Credit Suisse’s future, the sources added.

Credit Suisse declined to comment.

The bank said on Thursday it would seek a $54 billion loan from the Swiss National Bank after its customers withdrew more than $100 billion in funds in recent months, sending its shares down 25% on Wednesday.

Hätäköysi has helped the struggling lender, but its shares started to fall again on Friday.

With investor confidence still weak, some analysts have said the loan arrangement has merely bought Credit Suisse time to think about what to do next strategically to restore profitability.

Among the possible scenarios, analysts, bankers and investors speculate that Credit Suisse could sell or liquidate some of its existing businesses, making the unwinding of the cards possible.

A more decisive solution could be a direct takeover of a competitor.

The 167-year-old Swiss lender’s troubles can be blamed on years of scandals, top management turnover, multibillion-dollar losses and an uninspired turnaround strategy.

The sale of Credit Suisse shares began in 2021, triggered by losses related to the collapse of investment fund Archegos and Greensill Capital.

In July, new CEO and restructuring specialist Ulrich Koerner announced a strategic review that failed to attract investors.

An unfounded rumor about the bank’s impending bankruptcy in the fall caused customers to flee.

Credit Suisse confirmed last month that customers had withdrawn 110 billion Swiss francs in the fourth quarter, and the bank suffered its biggest annual loss of 7.29 billion Swiss francs since the financial crisis. In December, Credit Suisse had solicited investors for 4 billion Swiss francs.

On Wednesday, Saudi National Bank ( 1180.SE ), the bank’s biggest backer, told reporters it could not give more money to the bank because it was constrained by regulatory hurdles, although it supported the bank’s turnaround plan.

Reporting by Stefania Spezzati and Oliver Hirt; Editing by Elisa Martinuzzi, Tom Sims and Elaine Hardcastle

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