The bank told Reuters that it’s in the process of a strategy review that includes potential divestitures and asset sales.
The latest from Credit Suisse signals a “rocky period” ahead but it could lead to a change in the U.S. Federal Reserve’s direction, John Vail, chief global strategist at Nikko Asset Management, said Monday on CNBC’s “Squawk Box Asia.”
“The silver lining at end of this period is the fact that central banks will probably start to relent some time as both inflation is down and financial conditions worsen dramatically,” Vail said. “I don’t think it’s the end of the world.”
“We struggle to see something systemic,” analysts at Citi said a report about the possible “contagion impact” on U.S. banks by “a large European bank.” The analysts did not name Credit Suisse.
“We understand the nature of the concerns, but the current situation is night and day from 2007 as the balance sheets are fundamentally different in terms of capital and liquidity,” the report said, referring to the financial crisis that unraveled in 2007.