Home » FTSE 100 jumps as big US lenders bail out First Republic Bank – live updates

FTSE 100 jumps as big US lenders bail out First Republic Bank – live updates

Credit Suisse has been hit with its first lawsuit from US investors over its recent difficulties, alleging that it overstated its financial prospects to shareholders. 

The Swiss lender suffered a 30pc fall in its share price on Wednesday, prompting the Switzerland’s central bank to offer it a £44.5bn lifeline. 

Its shares recovered about 20pc by the close of play in Zurich on Thursday but that did not stop a proposed class-action complaint being filed in federal court in Camden, New Jersey.

It claims the bank made “materially false and misleading statements” in its 2021 annual report. 

The suit was filed by the Rosen Law Firm, which specialises in representing individual shareholders in such suits. 

It was also first to sue Silicon Valley Bank after it was put into receivership last week. 

Complaints filed by bigger investors usually become the main shareholder cases.

 Last week, Credit Suisse was forced to admit it had “material weaknesses” in its reporting and controls procedures when it published its delayed 2022 annual report. 

The bank suffered its biggest annual loss since the 2008 financial crisis in 2022 and scrapped bonuses for its top executives.

Credit Suisse declined to comment on the lawsuit.

It comes as the bank is grappling with the departures of several senior executives in its Asia-Pacific equities business as worries about the bank’s financial health roil global markets.

Nick Silver, co-head of equities for Asia Pacific and head of equities for Japan is leaving for a senior role at BNP Paribas SA, according to a memo seen by Bloomberg News. 

Jonathan Jenkins, head of equity sales for the region, and Chris Prasertsintanah, head of equities for South Asia and country manager for Thailand, have also decided to leave, according to the memo.

Mr Silver is joining BNP Paribas as head of Asia-Pacific sales for the prime-brokerage division, which caters to hedge-fund clients, the people said. 

Murray Parker, a spokesman for the Paris-based bank, declined to comment. Mr Jenkins and Mr Prasertsintanah will also pursue opportunities outside Credit Suisse, the memo said.

A spokesman for Credit Suisse could not immediately be reached for comment.