Credit Suisse stock slides in Zurich after U.S. tax probe report

Credit Suisse (NYSE:CS) shares have dropped 3.8% in Wednesday afternoon trading in Zurich and the cost of insuring its debt against default rose Wednesday after reports on Tuesday that the company may be the subject of a U.S. tax probe.

In U.S. premarket trading, Credit Suisse (CS) ADSs have risen 0.9% after dropping 5.4% on Tuesday.

Credit default swaps, which pay its holder when an issuer defaults, rose to 337 basis points from 323 bps, S&P Global Market Intelligence told Reuters.

The company's stock has been under pressure since the pandemic started in 2020, then took another leg down when it lost billions of dollars from the collapses of Greensill Capital and Archegos Capital in 2021. In June 2022, Credit Suisse (CS) was found guilty in a money laundering case.

Lately, it's been dogged by concerns about its liquidity and capital position. In response, company executives called large clients, investors, and counterparties earlier this month to reassure them that it has sufficient liquidity.

The stock has fallen 64% in the past three years.

Credit Suisse (CS) has said it will unveil its restructuring plan when it reports Q3 earnings on Oct. 27.

SA contributor Cavenagh Research looks into whether the bank can recover.