Credit Suisse CEO Tidjane Thiam sought to calm investors, saying the bank had ample liquidity and capital to weather current market turbulence.
His comments came as the price of Credit Suisse’s credit default swaps (CDS) – a key indicator of market confidence in a company’s ability to repay its debt – rose sharply, nearing the levels seen during the global financial crisis in 2009.
“I want to reassure you that Credit Suisse is a safe and stable bank,” Thiam said in a video message to staff.
“We have more than enough liquidity and capital.”
Credit Suisse’s CDS spreads widened by over 30 basis points to around 400 basis points on Friday, according to data from IHS Markit. That was the biggest one-day move since 2011 and took the spreads to their highest level since March 2009.
The moves sparked fevered speculation online that Credit Suisse could be on the verge of collapse, with some social media users comparing the situation to the 2008 Lehman Brothers crisis.
Credit Suisse’s share price has also been under pressure, falling by 60 percent over the past year.
The lender has been hit by a series of scandals and losses, including a costly write-down on the value of U.S. shale assets in 2016 and revelations earlier this year that it had helped wealthy Americans evade taxes.
Thiam said Credit Suisse was working hard to restore confidence and rebuild trust. “We know that we still have a lot of work to do,” he said. “But I am confident that Credit Suisse will emerge from this period stronger and more resilient.”
