Credit Suisse CEO Tells Staff to Focus on Facts to Stem Turmoil

(Bloomberg) -- The embattled chief executive officer of Credit Suisse Group AG told his staff to focus on facts as he pledged to rapidly move ahead with a plan to streamline operations.   

In a memo to staff, Ulrich Koerner said the bank would continue to focus on the transformation of Credit Suisse from a position of strength, citing an improved liquidity coverage ratio and recent capital raisings. A spokesperson at the lender couldn't immediately be reached for a comment.

“Effective communication is key to ensure that our clients and external stakeholders understand the strengths of the bank, our strategy and the accelerated progress we are making to create the new Credit Suisse,” he said.

The memo came after the bank early Thursday said it reached an agreement with the Swiss National Bank to borrow as much 50 billion francs ($54 billion) from a liquidity facility and offered to repurchase debt 3 billion francs of debt. The additional steps to shore up finances came after its shares slumped by as much as 31% on Wednesday in Zurich trading, and its bonds fell to levels that signal deep financial distress.

Worries about Credit Suisse's financial health have roiled global markets, alarmed regulators across Europe and the US and prompted some firms to reassess their exposure to the bank. 

Koerner said it had been a difficult week for the whole banking sector following the collapse of two US banks, adding that the delay of Credit Suisse's annual report had also “led to further attention on Credit Suisse.”

“At times like this, it is important to focus on facts and reinforce the strengths of the bank,” he said. 

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