Credit Suisse: EGM approves capital increase

(CercleFinance.com) - On Wednesday Credit Suisse shareholders approved, by a large majority, a proposed double capital increase totalling about four billion Swiss francs (4.
1 billion euros).

The Swiss bank announced the plan at the end of last month as it unveiled a loss of four billion francs in the third quarter alone and a new strategy to restructure its investment bank.

The first private placement, of over 462 million new shares, was supported by almost 92% of shareholders at an EGM in Zurich.

The second capital increase project - which provides for the issue of 1.77 billion shares - received over 98% of the votes.

The capital increases should enable Credit Suisse to raise its CET1 (Core Equity Tier One) ratio from 12.6% at the end of the third quarter to around 14% pro forma.

Investors clearly haven't taken kindly to this, with the share down over 5% in late morning trading today.



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