- Shares of Credit Suisse fell 7.8% in early trading on Monday.
- The markets are worried about the collapse of the Swiss bank before the restructuring plans.
- Credit Suisse executives spent the weekend trying to reassure big customers about the bank’s health, according to a report.
Shares of Credit Suisse fell nearly 8% on Monday as investors worried the bank would suffer a Lehman Brothers-style meltdown.
Swiss-listed shares fell 7.8% to 3.67 francs ($3.71) in European trading hours, after falling more than 12% earlier in the session.
Investors are concerned about the bank’s overall health as it finalizes a restructuring plan due to be announced Oct. 27.
On Friday there was a sharp increase in the spreads of the bank’s credit default swaps (CDS), which protect investors in case of default on their debts.
Senior executives spent the weekend trying to reassure big clients about the bank’s liquidity and capital position, according to a report by the financial times.
Credit Suisse shares are down 60% so far this year as Investors worry about bank collapse similarly to Lehman Brothers, the investment bank whose bankruptcy filing in 2008 heralded the start of the financial crisis.
In an internal memo seen by Insider, Credit Suisse CEO Ulrich Körner described the coming weeks as a “critical time for the entire organization.”
“There will certainly be more noise in the markets and in the press between now and the end of October,” he said in a note to bank employees. “All I can tell you is to stay disciplined and stay as close as ever to your clients and colleagues.”
“I trust you are not confusing our daily share price performance with the bank’s strong capital base and liquidity position,” Körner added.
Credit Suisse declined a request for comment from Insider.