On Monday, Credit Suisse stock plummeted as concerns over the Swiss bank’s financial health intensified.
After the bank’s CEO failed to reassure investors, the company’s stock plunged almost 10% before recovering somewhat.
In a message sent to employees last week, Credit Suisse’s top executive Ulrich Koerner emphasized that the company’s financial position was sound.
It precedes a reorganization plan that is due when the bank delivers its results at the end of October.
Sources close to the bank corroborated a Financial Times article that bank executives spent much of the weekend attempting to reassure key stakeholders about the institution’s financial viability.
A Credit Suisse representative declined to comment.
Mr. Koerner wrote in a memo sent to employees last week, “I believe that you are not conflating our daily stock price performance with the bank’s robust capital foundation and liquidity situation.”
He stated that there were “many factually erroneous remarks” in the media, but asked employees to remain committed in advance of the October 27 unveiling of the transformation plan.
“We are in the process of rebuilding Credit Suisse for a long-term, sustainable future with substantial value creation potential.
“I feel confident in our ability to achieve.”
In the past year, Credit Suisse stock has declined due to concerns over the bank’s financial standing.
In July, the bank launched a review of its strategy and replaced its CEO, Thomas Gottstein, with asset management expert Mr. Koerner.
Credit Suisse has 5,500 employees in the United Kingdom, with a large base in London.
According to Reuters, the Bank of England and the Swiss financial regulator FINMA are watching the issue.
The Bank of England refuses to comment on the matter.
