Is Credit Suisse facing a liquidity crisis?
If so, it will be bailed out.
The Swiss National Bank (SNB) announced on Wednesday that it would provide the century-old financial institution with liquidity if it is necessary.
From CNBC:
A statement from the the Swiss Financial Market Supervisory Authority (FINMA) and the SNB said that Credit Suisse “meets the capital and liquidity requirements imposed on systemically important banks” and that the central bank will step in if the situation changes. The regulators also said that the failure of two U.S. regional banks in the past week does not pose a “direct risk of contagion” to Swiss banks.
This comes after Credit Suisse shares tanked to record lows when Saudi National Bank would not offer additional capital to the bank.
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