Credit Suisse saw $68 billion in first-quarter outflows as it crumbled
Credit Suisse (CSGN.S) said on Monday 61 billion Swiss francs ($68 billion) left the bank in the first quarter, shedding light on the scale of the bank run that caused the 167-year-old institution to crumble and forced its state-engineered rescue.
“These outflows have moderated but have not yet reversed as of April 24, 2023,” Credit Suisse said.
The bank reported results for what is likely to be the last time, as its shotgun marriage with rival Swiss bank UBS (UBSG.S), is expected to be completed soon.
Assets managed by Credit Suisse’s flagship wealth management division dropped to 502.5 billion francs at the end of March, compared to 707 billion reported for the same period last year.
Clients rapidly started pulling money from Credit Suisse after it was ensnared in market turmoil unleashed by the collapse of U.S. lenders Silicon Valley Bank and Signature Bank.
This led Swiss authorities to scramble together a rescue package that included over 200 billion francs in financial guarantees and saw UBS agree to take over Credit Suisse for 3 billion Swiss francs in stock and assume up to 5 billion francs in losses.
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