Credit Suisse shares tumble to record lows as sell-off continues
Shares in Credit Suisse tumbled to record lows today as investors continued to shun the firm after warnings of a $1.5bn loss last week.
The embattled Swiss bank, which is pushing ahead with a major restructuring effort after posting consecutive heavy losses this year, saw a 3.59 per cent plunge in its share price today as investors continued to flee amid fears over the bank’s stability.
Shares in the lender have tumbled beyond 23 per cent since it updated the market on its outlook for the fourth quarter last week, hitting their lowest price on record of 2.915 Swiss Francs at one stage of the afternoon, according to Refinitiv data.
Investors have also been dumping the right to subscribe to new shares in the firm as it looks to raise $2.3bn and fund its restructuring efforts. Rights fell as much as 29.9 per cent to as low as 0.101 on their second day of trading in Zurich, Reuters reported.
Fears over the bank’s stability have been spreading in the past quarter as the bank makes attempts to turn itself around after a string of scandals, including the ousting of chief Tidjane Thiam over a corporate espionage scandal in early 2020.
The bank was then rocked by the twin collapses of Archegos Capital and Greensill Capital in 2021 which left it nursing billions of dollars of losses.