Sources are allegedly indicating that it is in the preliminary stages of considering how and whether to increase its financial buffer following last year's twin debacles related to Greensill and Archegos.
Switzerland's second-largest bank, Credit Suisse, is potentially looking at options to raise capital to replenish financial buffers that were significantly weakened by last year's losses, the Reuters news agency reported, citing two sources that had knowledge of the matter.
The news agency indicated that the increase would likely be more than 1 billion francs (roughly equivalent to the US dollar total) but the final amount has not been decided on yet. It added that discussions on the matter remain internal.
Reuters reported that selling shares to major, current shareholders seemed to be the most sought-after solution but that it was still considering looking at asking for funds from all of its investors.
Asset Management Disposal
It was also considering divesting one of its businesses, such as asset management, the news agency indicated, with any decisions expected in the latter half of 2022.
Credit Suisse indicated in a statement relayed by the news service that it was not currently considering raising additional equity and that it remained «robustly» capitalized.
