Credit Suisse Explodes Into Full-Fledged Crisis As Competitors Retreat
The stock dropped as much as 31%, reaching new lows, while benchmark bond prices tumbled to levels that signal the Swiss lender is in serious financial trouble. Credit Suisse Group AG's long-brewing problems erupted into a full-fledged crisis on Wednesday, as its shares and bonds plummeted and some of the world's largest banks hurried to protect their coffers from the possible impact. The stock plunged as much as 31%, hitting historic lows, while benchmark bond prices fell to levels that signal the Swiss lender is in significant financial distress - something seldom, if ever, seen at a major global bank since the 2008 crisis. However, banks who do business with Credit Suisse purchased credit-default swap contracts that will reimburse them if the situation worsens. According to persons familiar with the situation, at least one bank, BNP Paribas SA, has gone a step further and advised clients that it will no longer accept requests to take over derivatives contracts when Credit Su...
