Credit Suisse Receives a $54 Billion Lifeline
Shares of Credit Suisse skyrocketed on Wednesday after the bank secured a $54 billion lifeline from several major banks, including UBS and Goldman Sachs. With the influx of funding, Credit Suisse has been able to address its liquidity issues and return to profitability.
The Swiss banking giant had faced headwinds due to coronavirus-related economic uncertainty, leading to a significant decline in stock value over the past few months. The new injection of funds will help shore up its balance sheet and enable it to keep operations running smoothly despite turbulent markets.
In addition to raising capital, Credit Suisse has announced plans for cost-cutting measures in order to reduce expenses by around 15 percent year-on-year. This includes slashing 3,500 jobs and streamlining business processes, as well as exiting certain businesses.
Analysts are optimistic that this lifeline can bring about significant changes at Credit Suisse and make them more competitive in international markets. All eyes are now on what comes next for the bank as they look set to battle their way back into shape during these testing times.
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