1.5 trillion dollar Shares of Credit Suisse, which manages assets, fell from $14.90 in February 2021 to $3.90 as of October. As of September 2022, the bank’s 14-year CDS reached its highest level since 2008, when Lehman Brothers collapsed.
Deutsche Bank shares also rose after the 2008 crisis. Euro It has declined from its peaks to 7,65 Euros.
It is expected to be discussed at the Fed’s October 3 meeting.
Ulrich Koerner, CEO of Credit Suisse, said that “the bank is at a critical moment”, while some market followers claim that they have heard from reliable sources that a major investment bank in Europe is in a very difficult situation. Koerner also said that the balance sheet of the bank, which is preparing for restructuring, is in a strong condition.
Both banks are in the category of “systemically important financial institutions” (SIFI), namely “too big to fail” banks. The situation of European banks, which has been compared to the collapse of Lehman Brothers, which has become the symbol of the 2009 financial crisis by many observers, is expected to be one of the main agendas at the closed board meeting of the US Federal Reserve (Fed) officials on October 3.