Ian blatchford, Director of the Science Museum, London

London [UK], March 16 : Credit Suisse on Thursday announced that it would borrow almost USD 53.7 billion from the Swiss central bank to reinforce the group after a plunge in its share prices. The giant lender's shares dropped as much as 24 per cent.According to The Wall Street Journal, Credit Suisse, by doing this, plans to shore up its liquidity, capping a day in which fears about the health of global banks leapfrogged to Europe from North America.The bank also said it would repurchase USD 3 billion worth of senior debt whose value has plunged along with the perceived health of banks on both sides of the Atlantic. The Zurich firm stressed in a press release issued in the evening in New York that it was intent on simplifying its structure and better serving customers, WSJ said.Senior debts are loans secured by collateral (assets) that must be paid off before any other debts when a company goes into default."These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders," Chief Executive Officer Ulrich Koerner said in the release. "My team and I are resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs."Credit Suisse shares jumped more than 20 per cent early Thursday after the bank said it had tapped the financing, WSJ reported. Credit Suisse bonds also rose, though they didn't regain all the lost ground from the previous day's plunge.According to WSJ, Credit Suisse's plans mark the latest bombshell in a week full of them, as global banks struggle to fend off growing concerns that they and their overseers haven't sufficiently prepared for a world characterised by high inflation, high interest rates and high investor anxiety.The announcement came just hours after a dreary trading day concluded with Credit Suisse's New York traded depositary shares and major US stock indexes paring losses thanks to a statement by the Swiss National Bank that it stood ready to provide the firm with liquidity.Investor confidence in Credit Suisse crumbled on Wednesday, unleashing worries that a banking crisis centred among US regional banks had spread across the Atlantic and was poised to unleash substantial damage to markets and the economy, WSJ said on Thursday.Before the regulator's announcement, shares in the Swiss bank had slid 24 per cent to a new low. Prices on its bonds fell to distressed levels, indicating investors were pricing in the possibility the bank could default, WSJ reported on Thursday.Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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