Book Reveals Swiss Central Bank's 50B Swiss Franc Lifeline Plan for Credit Suisse Amid Collapse
In November, prior to its eventual rescue, Switzerland's central bank contemplated extending a lifeline of 50 billion Swiss francs ($56.87 billion) to Credit Suisse, a revelation detailed in Dirk Schuetz's book "Too close to the wind - Why Credit Suisse had to go down," which delves into the collapse of the 167-year-old bank. According to the book, Swiss National Bank Chairman Thomas Jordan engaged in discussions about this potential financial injection with Ueli Maurer, the Swiss finance minister at that time. The Swiss National Bank refrained from providing comments regarding this matter.
The vulnerabilities of Credit Suisse emerged in October, as a social media frenzy triggered a rapid withdrawal of funds by clients. This surge in fund outflows caused the bank to breach certain regulatory thresholds, undermining its financial stability.
However, the specifics of Credit Suisse's financial status leading up to its rescue remained shrouded in ambiguity. As of March 15, the bank declared that it not only met but also exceeded nearly all regulatory requisites.
Curiously, the central bank extended substantial liquidity support amounting to over 200 billion Swiss francs to Credit Suisse just days later. This assistance formed part of a takeover maneuver wherein rival UBS (UBSG.S) acquired the struggling bank.