Credit Suisse: Populist People’s Party Refuses to Back State Guarantee for $53 Billion Bailout

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Shares in Credit Suisse are tumbling after a forced merger with another Swiss bank were rejected. This comes as Switzerland’s largest political party signals it is against a state guarantee of the bailout for Credit Suisse after it received injection of liquidity from the Swiss National Bank (SNB) on Thursday with a loan of over 50 billion dollars.

Making the determination that Credit Suisse, the second-largest bank in the country and among the largest in the world, was vital to the stability of the Swiss financial system and economy, the SNB stepped in on Thursday to provide the bank with a loan worth 50 billion francs ($53.7/£44.3 billion). The move, they said, was in order to stabilise the lender amid concerns that it could be the second major bank to fail after the collapse of the Silicon Valley Bank in the United States last week, the German-language Swiss paper Neue Zürcher Zeitung reported.

According to the latest Financial Stability Report from the Swiss National Bank, Credit Suisse currently accounts for 13 per cent of all domestic loans and 14 per cent of domestic deposits. It is also one of two banks in Switzerland, alongside UBS Group AG, to have international holdings.