Credit Suisse says $68bn left bank in lead-up to rescue by UBS

theguardian.com:

Credit Suisse says 61bn Swiss francs ($68bn/£55bn) left the bank in the first quarter, shedding light on the scale of the bank run that caused the 167-year-old institution to crumble and forced its state-engineered rescue.

“These outflows have moderated but have not yet reversed as of April 24 2023,” Credit Suisse said on Monday.

The bank reported results for what is likely to be the last time, as its shotgun marriage with rival Swiss bank UBS is expected to be completed soon.

Assets managed by Credit Suisse’s flagship wealth management division dropped to 502.5bn francs at the end of March, compared to 707bn reported for the same period last year.

Clients rapidly started pulling money from Credit Suisse after it was ensnared in market turmoil unleashed by the collapse of US lenders Silicon Valley Bank and Signature Bank.

This led Swiss authorities to scramble together a rescue package that included more than 200bn francs in financial guarantees and saw UBS agree to take over Credit Suisse for 3bn Swiss francs in stock and assume up to 5bn francs in losses.