After Credit Suisse (SWX: CSGN) announced plans to borrow up to 50 billion CHF (around $54 billion) from the Swiss central bank in an effort to strengthen its liquidity amid rising fears of the financial crisis spreading to the Zurich-based bank, its stock price skyrocketed 26% on the day.
Indeed, Credit Suisse announced it intended “to exercise its option to borrow from the Swiss National Bank (SNB) up to CHF 50 billion under a Covered Loan Facility as well as a short-term liquidity facility, which are fully collateralized by high quality assets,” according to the bank’s press release on March 16.
As a result of the positive news, the Credit Suisse stock surged over 26% on Thursday, reaching the price of 2.14CHF (around $2.30) per share, reversing the losses of 14% and 23% it accrued during the previous five days and 30 days, respectively, as per the most recent data retrieved by Finbold.
