FLASH: The Swiss National Bank stands ready to intervene to support Credit Suisse, it was announced late today by the Swiss Financial Market Supervisory Authority. The loan may be in the range of $54 billion to Credit Suisse.
The “systemically relevant” financial institution, Credit Suisse, has been hemorrhaging customers, forcing it to borrow CHF39 billion (Swiss francs) from the central bank last year, in addition to having to sell off assets in order to generate liquidity. Those were big customers, but small customers are “sticky” and are not leaving the bank, the management said—at least not yet.
