Horror week for the big bank
Pension funds are now also taking a close look at CS
It just can’t get out of the negative headlines, Credit Suisse. Towards the end of the week, share prices recovered slightly. The big bank is still far from calm.
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Uncertainty at Credit Suisse remains high.
It was a really dull week for Credit Suisse. For the first time in the history of the Escher Bank, shares fell below the 3 franc mark on Monday. On Thursday even under 2.70 francs. Cheaper than ever. At the end of the week they were back at CHF 2.95.
Of course, the Credit Suisse crisis is far from over. Uncertainty remains high. Because now it is clear: The constant negative headlines and the brutal crash in the share price also make pension advisors and pension fund managers take a closer look.
The situation at Credit Suisse is definitely an issue for the pension funds, says Ueli Mettler, partner at the pension fund consultancy c-alm. “There is uncertainty,” he says of the NZZ. No wonder: the CS share price has fallen by 65 percent since the beginning of the year. Customer funds have flown out. According to many experts, the big bank’s strategy is still not sharpened enough.
“Don’t overreact”
Pension funds must of course take a very close look at this in order to minimize risk for their customers. And now they seem to be doing it. “Against this background, the pension funds also assess the development of Credit Suisse and make their investment decisions based on their assessment of the situation,” says Mettler in the report.
Martin Janssen, on the other hand, urges calm. He is the founder of the pension fund consultancy Ecofin. And says to the NZZ: “Pension institutions should not overreact.” The financial market regulator Finma is currently firmly of the opinion that there will be no bankruptcy of Credit Suisse.
The bank did not want to say whether the pension funds had already withdrawn funds from Credit Suisse. (pbe)