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Credit Suisse capital boost to placate critics

Credit Suisse capital boost to placate critics
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Credit Suisse is to boost its capital reserves to try to restore investor confidence.

It will issue convertible bonds, sell assets and cut more costs to raise the equivalent of 7.24 billion euros

The moves are in response to damaging criticism from the Swiss central bank.

Credit Suisse’s shares tumbled last month when the central bank called for urgent action to improve its capital this year.

“The measures we have announced today should eliminate any of the doubt raised by the Swiss National Bank report,” Credit Suisse Chief Executive Brady Dougan told a conference call.

The SNB welcomed the move. “In an environment that remains particularly challenging for the international banking system, these measures substantially increase the resilience of Credit Suisse Group,” the central bank said in a statement.