The market panic that prompted the Swiss National Bank to provide a $54 billion lifeline for Credit Suisse Group AG this week appeared, by some measures, worse than the ones that toppled Lehman Brothers Inc. and forced an emergency sale of Bear Stearns Co. in 2008.
A rush by Credit Suisse’s counterparties to insure against a potential default triggered a surge in one-year credit-default swaps tied to the Zurich-based lender. As of Thursday, the cost of the derivatives was more than double that of contracts tied to Lehman and Bear on the last full trading session before they collapsed, according ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.