US Treasury Secretary Janet Yellen Reassures Public as Credit Suisse Borrows $54 Billion from Switzerland’s Central Bank

On Monday morning, customers of Credit Suisse, a banking giant, were met with a surprise announcement. The bank had decided to borrow $54 billion from Switzerland’s central bank. This move was part of a larger effort by authorities to ease mounting fears of a global banking crisis.

In response to the news, US Treasury Secretary Janet Yellen said that US officials have taken “decisive and forceful” actions to bolster confidence in the banking system and stressed that Americans’ bank deposits are safe. Yellen also said that the measures demonstrate a commitment to ensure that depositors’ savings remain safe.

Credit Suisse CEO Ulrich Koerner also released a statement, saying that the measures demonstrate decisive action to strengthen Credit Suisse as they continue their strategic transformation to deliver value to their clients and other stakeholders.

Yellen further reassured the public in prepared remarks to be delivered on Thursday during a hearing before the Senate Finance Committee, saying that the banking system remains sound. This was a marked reversal on a day earlier, when Credit Suisse shares slumped and intensified fears of a possible run on bank deposits after the collapse of two U.S. banks last week.

Overall, the news of Credit Suisse borrowing $54 billion from Switzerland’s central bank has been met with a sense of relief, as US officials have taken decisive and forceful actions to bolster confidence in the banking system and ensure that Americans’ bank deposits are safe.