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Comments From Credit Suisse CEO Send Eurobank Stocks Volatile

Comments From Credit Suisse CEO Send Eurobank Stocks Volatile
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European bank shares are witnessing volatile trading in the American stock exchanges following a comment from Credit Suisse Group AG (ADR) (NYSE: CS) CEO, Tidjane Thiam, about a challenging third quarter.

According to a Dow Jones report, Thiam said during an investment conference that he expects weak contribution from its investment banking division in the third quarter. In the second quarter too, the company suffered a 10 percent drop in revenue from its equities businesses.

Related Link: The U.S. Economy Is On "Uneasy Street"

Credit Suisse did not see any change in the third quarter; the depressed client activity trend continued, thus impacting the year-over-year comparisons.

Referring to the outflows in respect of its wealth management division as part of the regularization process, Thiam estimates two billion francs of undeclared assets held in the bank's accounts until now.

The company has already slashed 4,800 jobs and plans to reduce another 1,200 jobs before the current year ends to overhaul its investment banking division.

Following the news, the following eurobank stocks were on the move:

  • Credit Suisse ADRs were down 1.99 percent at $12.81.
  • Barclays PLC (ADR) (NYSE: BCS) were down 1.15 percent at $8.58.
  • Deutsche Bank AG (USA) (NYSE: DB) were trading at $11.70, down 1.27 percent.

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