November 24, 2024

Credit Suisse (C1SU34) may announce a capital increase

2 min read

Credit Suisse (C1SU34) appoints banks and may announce a capital increase
Credit Suisse Photo: Disclosure

a Credit Suisse (C1SU34) Morgan Stanley and Royal Bank of Canada (RBC) for potential work Capital increase. Information from Bloomberg.

a Capital increase May occur after the official announcement of Restructuring of Credit Suisse On October 27, according to Bloomberg. The operation was titled ‘Project Ghana’.

Anonymous sources in support of the case said that Credit Suisse had formed a group of banks in order to sell the potential shares. The increase comes with the possibility that the bank will need to boost equity and raise funds for restructuring.

In recent days, it has been rumored that Credit Suisse is suffering and could go bankrupt.

The Credit Suisse crisis Motivated by the market’s fear of credit and the bank’s solvency, which will determine whether or not it becomes insolvent, says Eden Alves, partner and president of the bank operating table From Ação Brasil Investimentos.

But the main issue is credibility, says Alves, who can pull credit and ability to pay.

“The current credit moment is putting the house in order,” says Lucas Schareau, investment advisor From iHUB Investimentos.

Charo explains that there is damage to the Swiss bank’s investment decisions, and even its reputation.

The result is the loss of the account holder’s confidence to withdraw OwnerIt brings with it a serious liquidity problem, which forces him to sell assets and property, he says.

Credit Suisse has already announced that it will restructure operations and sell part of the operations. CEO Christian Messner is expected to step down.

Alves believes that if the gap is actually greater than this capital value and they are going to come in to raise the money, Credit Suisse could have problems. He explained that the restructuring will come precisely to try to avoid the scenario.

In the first week of September, Credit Suisse announced a surprise buyback of its $3 billion major bond.

The executive says this buyback is intended to give the market the image that the institution is safe, as well as extending debt and lowering the cost of debt.

“It is a positive signal for the market, which indicates that Credit Suisse moves to avoid bankruptcy risks,” concludes Alves.

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