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IPFS News Link • Economy - International

Credit Suisse Slashes Jobs As Stock Suffers Longest Losing Streak Ever

• https://www.zerohedge.com, by Tyler Durden

Amid years of scandals, mismanagement, mammoth asset outflows, and the current dilution from a vital capital raise that is under way, Credit Suisse shares have plunged for 13 straight days (the longest losing streak in the bank's history) to a new record low, just a few percent above the price of 2.52 francs for the 4 billion Swiss Franc subscription rights that the bank offered existing investors.

The threshold of 2.52 francs is "the 'hard underwriting' price for the consortium of 19 banks," JPMorgan & Co. analysts said in a research note.

If Credit Suisse's shares keep trading above that level until "the last day of rights trading on Dec 6, 2022, we can assume at that point the capital raise was most likely a success."

If not, then who knows what's next?

As Bloomberg reports, while the rights offer is "highly unlikely" to fail, such a scenario would cause S&P to "evaluate" the impact on the credit ratings it has placed on Credit Suisse, analyst Anna Lozmann said by email. She also said that "continued strong outflows of deposits" could be a "trigger for a negative rating action."


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