Credit Suisse: Bank rescue damages Switzerland's reputation for stability - BBC News

Beset by scandals and crisis, many people are questioning how a totemic bank ended up beyond repair.

18 hours agoShareclose panelShare pageCopy linkAbout sharingImage source, Getty ImagesBy Imogen FoulkesBBC Geneva correspondentSo farewell to Credit Suisse. Founded in 1856, the bank has been a pillar of the Swiss financial sector ever since. Although buffeted by the financial crisis of 2008, Credit Suisse did manage to weather that storm without a government bailout, unlike its rival-turned-rescuer UBS.

More recently, the marketing face of Credit Suisse has been Switzerland's tennis god Roger Federer. He smiles down from posters at Swiss airports, a symbol of strength, excellence, staying power and reliability.

But behind the glossy promotion were some big problems. Divisive management, costly exposure to finance company Greensill Capital, which collapsed in 2021, a seedy money laundering case, and waning customer confidence in the last few months, which saw billions being withdrawn from the bank.

All it took to turn those doubts into a stampede was an apparently off the cuff remark from the Saudi National Bank, which owns almost 10% of Credit Suisse, suggesting it would not be increasing its investment.

Credit Suisse's shares went into free fall, and even a statement of confidence from the Swiss National Bank, and an offer of $50bn (£41bn) in financial support, couldn't stabilise the situation.

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