Credit Suisse Hires 20 Banks To Increase Capital $4 billion To Restructure

It was reported on October 31st that Credit Suisse Group AG hired about 20 banks to raise capital of $4 billion to help restructure.

Among the 20 banks, Saudi National Bank become a new top shareholder, which has pledged $1.76 billion to buy shares at a 6% discount to the average price. It will need the shareholders’ approval next month. It also includes Wall Street lenders, such as Goldman Sachs Group Inc., European names such as BNP Paribas SA, Barclays Plc, and some Asian companies. The announcement made last week include Morgan Stanley, Royal Bank of Canada, Deutsche Bank AG and Societe Generale SA. Credit Suisse also invited some lenders to underwrite the newly issued shares. It slashes workforce by 17% and breaks up its investment banking unit, triggering the biggest single-day decline of 19% on record.

Miles Guo, the founder of the New Federal State of China said that Credit Suisse is one of the most important banks for the Chinese Communist Party to hide money abroad and would not bankrupt.

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