Credit Suisse Group’s shares fell to a new low today as the stock’s price dropped to SFr2.28.
The Swiss bank fell by more than 14% on Monday morning, which partially reflected a wider drop in European banks, with the STOXX Europe 600 Banks Index falling by close to 5% since opening on Monday.
Credit default swap (CDS) rates for Credit Suisse rose by around 44 basis points to 4.46%.
The increase continues to widen the gap between it and other high-grade European companies, according to a Bloomberg index.
Swiss bank UBS saw its rate reach record highs of 1.18% in October- almost four times less than Credit Suisse’s current CDS.
Much of the damage witnessed to the markets and European banks is the fallout from Silicon Valley Bank’s collapse.
However, the failed US bank isn’t entirely to blame for Credit Suisse’s shortcomings.
The second-largest bank in Switzerland has been embroiled in controversy over the last few years.
Most recently, the lender was forced to postpone publishing its 2022 annual report after the US Securities and Exchange Commission called in executives to speak about issues with cash flow statements in previous years.
The scandal-ridden bank is still trying to recover from a list of controversial events including the stalking of a senior executive, facilitating cocaine money laundering and lending to failed Archegos hedge fund and teh bankrupt Greensill Group.
Credit Suisse, hoping to move forward, has begun restructuring by laying off employees, cutting costs and spinning off its investment bank as an independent business.