Your Evening Briefing: Panicky Markets Turn on Embattled Credit Suisse

It’s not 2008 by any stretch, but you’d be forgiven for having a little of that sinking feeling from 15 years ago as news of trouble at yet another bank seems to arrive each day. Today, it was Credit Suisse.

Switzerland’s second-largest lender has been pummeled over the last several years by scandals, leadership changes and legal issues. Just yesterday, Chief Executive Officer Ulrich Koerner was pleading for patience as he pushes through a radical overhaul of the battered bank. But on Wednesday, its stock was hammered after its biggest shareholder ruled out increasing a stake because of regulatory constraints. Now banks that trade with Credit Suisse are moving to safeguard their finances, snapping up credit-default swaps that will compensate them if its fortunes darken further. So frantic was the demand for the contracts that they spiked to levels unseen at a major global bank since—you guessed it—the financial crisis. At least one bank, BNP Paribas, informed clients it will no longer accept requests to take over their derivatives contracts when Credit Suisse is the counterparty.