Credit Suisse Group AG shares fell to an intraday record low on Tuesday after Reuters reported that Switzerland’s financial regulator is reviewing comments that the lender’s Chairman Axel Lehmann made in December on outflows from the company having stabilized.
(Bloomberg) — Credit Suisse Group AG shares fell to an intraday record low on Tuesday after Reuters reported that Switzerland’s financial regulator is reviewing comments that the lender’s Chairman Axel Lehmann made in December on outflows from the company having stabilized.
The stock slid as much as 5.7% to 2.613 Swiss francs, surpassing the previous all-time trough.
Finma is looking to establish the extent to which Credit Suisse representatives including Lehmann were aware that clients were still withdrawing funds when he made the comments, according to the report, which cited two unidentified people familiar with the matter.
In an interview with Bloomberg News, Lehmann said that client withdrawals, which had surged in early October, had “basically stopped.” The remarks were made before the close of a crucial $4 billion capital raise, though results published this month showed that further outflows worth tens of billions of dollars continued until at least the end of the quarter.
Finma and Credit Suisse declined to comment on the report.
The regulator is reviewing whether Lehmann’s statements were potentially misleading, Reuters reported.
Credit Suisse shares surged as much as 10% on Dec. 2, after Lehmann said the bank’s liquidity was improving and the huge outflows of client assets that had spooked markets were coming to an end.
–With assistance from Macarena Muñoz.
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