Credit Suisse, one of the leading banks in Switzerland, faced a significant bank run ahead of its collapse in March 2023, a Reuters report said on Monday.
The Swiss bank announced that it experienced a significant outflow of assets totaling 61 billion Swiss francs ($68 billion) in the first three months of 2023. Reuters reported that customer deposits fell by 67 billion Swiss francs in the quarter, with the bank's wealth management division responsible for most outflows across regions.
Over $17.3 billion worth of bonds issued by the struggling Credit Suisse bank has become worthless overnight after rival UBS Group AG pitched in with the takeover bid. Under the takeover deal, UBS will be writing down the bank's additional tier 1 (AT1) bonds to increase core capital.
Even before Credit Suisse Group AG’s government-brokered takeover, the Swiss lender was in the process of cutting 9,000 jobs in an effort to save itself.