This is not good:
CREDIT SUISSE SHARES HIT NEW LOW AS
CHAIR’S CLAIMS COME UNDER SCRUTINY
Credit Suisse shares dropped to a record low on Tuesday following a report that Switzerland’s financial regulator was examining comments made by the bank’s chair over how much clients had withdrawn from the bank. . . .
The comments by Lehmann came at a critical time for the troubled bank as it sought to raise SFr4bn ($4.3bn) of fresh capital from shareholders.
In an interview with the FT on December 1, [CEO Axel] Lehmann said outflows had “completely flattened out and . . . partially reversed” following a wave of customer redemptions in October. A day later, in an interview on Bloomberg TV, Lehmann said outflows had “basically stopped”.
The bank revealed in its full-year results this month that outflows continued throughout December and into January across the group . . . . [Emphasis added.]
Looks a bit like a slow-motion train wreck, wouldn’t you say? Oh, and if you’re wondering why Credit Suisse might be tempted to be less than completely forthcoming regarding the state of clients’ fund flows, there’s this:
If outflows go on at that rate for long enough, pretty soon you don’t have a bank.