Credit Suisse Crisis

In News

  • Recently, the share price of Credit Suisse has hit an all-time low.

About Credit Suisse crisis

  • It was founded in 1856 to fund the development of Switzerland’s rail system.
  • It is one of the oldest and historically one of the most influential banks in the world. It is based in Switzerland.
  • Credit Suisse is also the primary dealer and Forex counterparty of the FED.

Recent issues

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  • Credit Suisse’s share price has fallen close to 60 per cent.
  • The spreads on credit default swaps (CDS) on Credit Suisse debt have spiked to a 14-year high the highest since the global financial crisis of 2008.
    • A credit default swap (CDS) is a financial derivative that allows an investor to swap or offset their credit risk with that of another investor. 

Source: IE