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Credit Suisse Stock Lending Clients Retreated Amid Swings

  • Bank had to reverse transactions as some clients were spooked
  • Outflows have since reversed, with no material revenue impact
Bloomberg business news
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A Credit Suisse Group AG business that lends out shares reversed some of those transactions in recent days after investors that provided the securities pulled back over concern about the bank’s financial health.

The Zurich-based lender told borrowing clients at the stock-loan unit that some counterparties temporarily stopped dealing with it because of mounting market pressure, forcing it to withdraw shares, according to people with knowledge of the matter. The unit saw less than 5% of the total pool pulled, and there was no funding impact for Credit Suisse, one of the people said.