The noose around Credit Suisse is tightening, one by one its market partners are tightening

RockedBuzz
By RockedBuzz 2 Min Read

THE news agency article among these, he mentions the French Societe Generale and the German Deutsche Bank, and reports on the yet-to-be-decided move of the private banking business of the British HSBC.

Restrictive actions by market partners further aggravate the perception of the bank, which is trying to reorganize its operations after a series of costly scandals and this week received 50 billion Swiss francs worth of liquidity assistance from the Swiss National Bank.

Credit Suisse declined to comment at this time. The bank previously announced that it is a strong, global bank that meets and basically exceeds all regulatory requirements.

Societe Generale will maintain its existing partner positions at Credit Suisse, which it has reduced in recent weeks, but will not increase them, two sources of the news agency said.

Deutsche Bank, meanwhile, this week increased the discount assigned to Credit Suisse’s securities (that is, it also tightened), in addition to which it accepts them from asset management clients as loan collateral.

HSBC Holdings has reportedly not yet made a decision on whether to reduce its exposure to Credit Suisse, but is closely monitoring developments and will make a decision early next week.

At a fourth large global bank, one of the Asian partners of the Swiss bank, the Swiss partner is asked to settle gross, that is, he has to pay in advance instead of being settled according to the net position at the end of the transactions.

Another global bank has reduced its unsecured exposure to Credit Suisse but continues to provide repos, which qualify as collateralized lending.

credit suisse

Cover image: Getty Images

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