These are very important days for patient Credit Suisse (CS). On October 27, the bank wants to reveal what its future should look like. The financial world expects clear words from the big bank. After various scandals and losses, analysts and clients expect a simplification and simplification. The main focus is investment banking. Until then, it will be primarily financial analysts who will make the headlines. The rumor mill is churning.
For example, the New York Times defines Credit Suisse stocks as meme stocks. Headlines that go viral on the Internet and attract the attention of many private investors are called that. “Credit Suisse’s longstanding problems have caught the attention of amateur investors, whose social media posts have sparked fears that the bank is running out of cash,” the newspaper writes.
We expect stocks to fall
To be specific: Thousands of people would have relied on online forums like Reddit for a crash on CS shares. As a result, the price of CS shares fell to an all-time low of CHF 3.67 at the beginning of October. Shortly after CS boss Ulrich Körner (59) had an internal motto of perseverance. And a tweet followed by an analyst: “Markets say the bank is bankrupt and likely to go bankrupt. Are we living in a moment like 2008?”
Large price turbulence is typical for nozzle stocks. It’s an embarrassment for the venerable bank to have CS combined with these.
Middle East capital
Finance portal finews.ch writes that Credit Suisse is approaching at least one sovereign wealth fund in the Middle East for a capital injection. The reason: CS will need $4 to $9 billion to implement the new strategy by 2024. And it has excellent links with the Middle East. That’s why Finews thinks the rumor is plausible.
That’s by no means the only thing: Another says Credit Suisse is starting to sell its American fund business. The financial portal cash.ch writes that several investors will be interested in the sale. Source: Those who know the subject. The big bank does not want to comment on this. (pbe)