The cautious stance taken by Credit Suisse’s rivals, details of which were previously unreported, comes after the Swiss central bank threw a lifeline at the lender after its shares plunged in the wake of a US banking crisis this week. week.
The restrictions add to the problems of the bank, which is trying to restructure its operations and find a footing after a series of costly scandals.
The five people with direct knowledge of the matter requested anonymity due to the sensitivity of the situation.
Societe Generale has maintained existing counterparty positions with Credit Suisse, which it had cut in recent weeks, but is not increasing them, according to two sources with direct knowledge of the situation. The French bank declined to comment.
Deutsche Bank, for its part, this week cut the value it places on Credit Suisse securities, such as bonds, put up by its wealth management clients as collateral for loans, according to a senior executive at a European wealth manager who maintains business links with the German lender. Before, the bank valued them at 70-80% of face value, the source said.
Deutsche Bank also declined to comment.
The private banking business of HSBC Holdings Plc has also begun examining its Credit Suisse equity-linked loans, which are held by clients in Europe and Asia, a source with direct knowledge of the matter said.
The source added that the bank has not yet made any decision on reducing its exposure to the Swiss lender, but that it was closely watching developments and will make one early next week. HSBC had no immediate comment.
Another source at a major global bank, which deals directly with Credit Suisse in Asia, said their bank had begun asking the Swiss lender for a gross settlement, a trading scenario in which the counterparty demands payment upfront from Credit Suisse in instead of later collecting money that the Swiss lender may owe you as a result of a transaction.
Another world bank has reduced its unsecured exposure to Credit Suisse, which includes all unsecured loans, according to a person with knowledge of the matter. The bank continues to offer repurchase agreements, which are secured loans.
Credit Suisse said on Thursday it intended to borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank in what it called a “resolute move” to increase its liquidity.