Big banks restrict transactions with Credit Suisse

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Deutsche Bank, for example, this week lowered the lending value of Credit Suisse securities, such as bonds secured by asset management clients as collateral for loans.

According to the article, this was reported by the senior manager of a European asset manager who maintains a business relationship with Deutsche Bank. The bank was valuing these securities at 70 to 80 percent of par value, he said.

British HSBC’s private banking business has begun examining loans related to CS securities held by clients in Europe and Asia. Here, too, Reuters relies on a person with direct knowledge of the subject.

An unnamed source said HSBC has not yet made a decision on reducing CS exposure, but is monitoring developments closely and aims to make a decision early next week.

France’s Société Générale, on the other hand, has reduced its positions with CS as the opposing side in recent weeks and now maintains its current positions. According to the news, two people said they would not increase it any more.

A global bank in Asia that works directly with CS is also said to be asking for advances on transactions with a Swiss bank so that it doesn’t have to collect money later.

Another unnamed source said that another global financial institution has reduced its unsecured exposure to Credit Suisse. It also offers anonymous bank repurchase agreements. However, these are secured loans.

Bank officials did not comment on Reuters. When asked by the AWP, CS said they would not comment on what was written. (SDA)

Source :Blick