Credit Suisse is reportedly sounding out investors to potentially raise new capital in a move that could be difficult to avoid.
Credit Suisse has been sounding out investors for fresh capital in recent weeks, according to a «Reuters» report citing unnamed sources. One source claims that avoiding a capital increase was likely to be difficult through investors in talks have been making tough demands in exchange.
According to Deutsche Bank analysts in August, Credit Suisse was facing a capital gap of at least 4 billion Swiss francs ($4.1 billion) to improve its financial health.
Meanwhile, the Swiss lender has already raised capital in three rounds totalling around 12 billion francs since 2015 – nearly equivalent to its current market value.
US Exit Denied
In addition, the report also said that Credit Suisse was considering an exit from the US market.
The bank has recently refused to comment on most reports about its strategy, consistently insisting that it would be «premature» to do so before the update scheduled to be presented during the third quarter earnings next month. But in a rare deviation from this line, Credit Suisse denied the claims.
«Credit Suisse is not exiting the US market. Any reporting that suggests otherwise is categorically false and completely unfounded,» it said in a statement.
