![]() ![]() Nevertheless, the initially panicked stock-market reaction on Monday to rising CDS costs - and the sell-off over the past couple of months - points to a worsening set of options available to the Swiss firm ahead of its emergency strategy review on October 27, which is expected to include a large-scale investment banking retreat. Costs to insure the bank’s debt against default also declined. Indeed, the shares climbed more than 4% on Tuesday, taking them above where they closed on Friday, when CEO Ulrich Körner published a memo that helped set off the turmoil. “This is not 2008,” Citigroup’s Andrew Coombs said. ![]() Morgan Stanley went through similar in 2011. In reality, several analysts say the better comparison is to Deutsche Bank in 20 - a time when Joshi helped devise its own crisis response to a surge in the German bank’s credit default swaps. The price investors have to pay to insure the bank’s debt hit record levels, leading some to hearken back to the fear-driven days of 2008. The wild gyrations show the difficulty for Credit Suisse in managing the febrile confidence of investors as it rushes to devise a repair plan for its investment bank, which has been on the ropes since suffering huge losses last year from backing Archegos Capital Management. Shares in the Swiss banking giant plummeted 12% to an all-time low on Monday after a weekend of fevered Twitter speculation about its financial health, before they regained almost all of the losses later in the day. ![]() And yet the experience will not have been entirely unfamiliar for the former Deutsche Bank high-flyer. Dixit Joshi will not forget his first day as Credit Suisse’s CFO in a hurry. ![]()
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