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Shares of Credit Suisse jumped Thursday after saying it would borrow up to $54 billion from Switzerland’s central bank, an emergency step intended to prop up investor confidence in the troubled European bank.
Credit Suisse shares had plunged on Wednesday, prompting stock markets to fall in the U.S. and around the world, amid rising concerns about the stability of the global banking system after U.S. regulators were forced to rescue Silicon Valley Bank and Signature Bank on Sunday.
Credit Suisse’s troubles, however, were distinct from the two collapsed U.S. lenders. The European bank had already been reeling after a succession of scandals and poor decisions that several CEOs have failed to address over several years.
The lender also recently acknowledged there had been potential problems with the way it reported its financial position as recently as last year, and its shares then plunged on Wednesday after the chairman of its biggest shareholder, Saudi National Bank, said it would not increase its nearly 10% investment.
