Why Credit Suisse (CS) Shares Are Plunging Today

Credit Suisse Group AG CS shares fell Friday premarket after reports that the company is looking to raise fresh capital.
The Swiss bank is approaching the investors for the fourth time in around seven years, Reuters reported, as it attempts a revamp of its beleaguered investment bank unit.
The report mentioned that various scenarios are under discussion for the investment bank, including the most drastic option of largely exiting the U.S. market.
Credit Suisse has raised almost CHF12 billion ($12.22 billion) since 2015, but it is unclear how much the investors are interested as the bank has been at the center of several scandals.
Including Friday's move, shares are down over 50% this year and are on track for their worst yearly performance since 2008.
According to recent reports, Credit Suisse was also weighing splitting its struggling investment bank business into three parts.
Separately, Bloomberg reported that Credit Suisse is looking to divest Latin American wealth management operations excluding Brazil as part of a broad review of which businesses it wants to keep after a planned restructuring.
The report also mentioned that Credit Suisse denied that it is considering exiting the U.S. market.
"Credit Suisse is not exiting the U.S. market. Any reporting that suggests otherwise is categorically false and completely unfounded," a representative for the bank said in a statement.
Price Action: CS shares are down 8.70% at $4.30 during the premarket session on the last check Friday.
Photo via Wikimedia Commons

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