Bank under supervision
Credit Suisse sells Nobel Hotel Savoy in Zurich
10/06/2022, 5:09 PM
The large Swiss bank has doubts about its capital strength. Default insurance is skyrocketing. The share price collapses. The central bank and regulators keep an eye on the money house.
The major Swiss bank Credit Suisse wants to sell a chic hotel in the center of Zurich. “Credit Suisse regularly reviews its real estate portfolio as part of its global real estate strategy,” said a spokeswoman. “The bank has decided to initiate a sale process for Hotel Savoy.”
Founded in 1838, the traditional Savoy Hotel Baur en Ville is located on Paradeplatz, the center of the Swiss financial center with the headquarters of Credit Suisse and UBS. It is currently under renovation and will be managed by the Mandarin Oriental Group.
The bank is in the midst of a restructuring process and could probably put the money to good use. Because doubts about the bank’s stability had recently pushed its shares to an all-time low. At the same time, credit default insurance skyrocketed. According to circles, the bank had tried to allay fears of insufficient capital this weekend in a memo to staff and in a series of phone calls with investors. However, some observers indicated that doing so could achieve the opposite.
Analysts currently see no danger of the bank getting into trouble. Nevertheless, several experts expect Credit Suisse to strengthen its balance sheet, partly in order to finance the expected exit from parts of investment banking.
Credit Suisse has been in a downward spiral of billions of losses, management changes and lawsuits for months, and some analysts say the market is charging a capital increase for the bank. The Swiss National Bank (SNB) is following developments closely. “We are monitoring the situation,” Andrea Maechler, SNB board member, said at an event in Zurich. “They are working on a strategy that will be released at the end of October.” According to an insider, Swiss financial market regulator Finma and the Bank of England in London, where the institute has a large presence, are also monitoring the situation.