Credit Suisse raises 10 bln frcs

October 16, 2008

, ZURICH, October 16 – Switzerland\’s second largest bank Credit Suisse said Thursday it had raised 10 billion Swiss francs (6.5 billion euros, 8.7 billion dollars) of new capital, as it posted a 1.3-billion-franc third quarter loss.

"Credit Suisse has raised tier 1 capital from a small group of major global investors, the largest participant being the Qatar Holding LLC, a wholly-owned subsidiary of the Qatar Investment Authority," a bank statement said.

The capital hike would see the bank\’s so-called tier 1 ratio — a measure of capital adequacy — raised to 13.7 percent from 10.4 percent at the end of the third quarter.

The bank\’s chief executive officer Brady Dougan said "unprecedented market disruption in September" had led to losses in the investment bank unit.

"Our investment bank was impacted by the volatile conditions and the result reflects further writedowns in our leveraged finance and structured products businesses and other losses resulting from the exceptionally adverse trading conditions in September," he said.

Credit Suisse had plunged into a net loss of 2.148 billion Swiss francs in the first quarter, but managed a profit of 1.215 billion francs in the second.

In all, it has written down about 10 billion Swiss francs worth of assets since the credit crisis began.

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