What costs less than a cup of coffee in Zurich? A share of Credit Suisse, so went the joke among financial analysts on Monday. After a turbulent weekend, the price of the Swiss bank plunged more than 10 percent into the red on Monday morning, to 3.55 Swiss francs per share (3.67 euros) – a record low. In comparison, a cup of coffee in the famous Café Henrici in Zurich’s Old Town currently costs 4.80 Swiss francs. Credit Suisse is at a “critical moment” in its existence, CEO Ulrich Körner wrote in a memo to staff last Friday. In the first half of 2022, the bank recorded a net loss of more than 2 billion euros, which cost Körner’s predecessor Thomas Gottstein the head . The new director wants to turn the tide by cutting costs for billions and radically reorganizing the business branch. The bank will announce more details about this “comprehensive” strategy change at the end of this month. But investors are skeptical about the plans. In the course of last month, the share fell by more than 25 percent, since January 1, the bank has lost a total of 60 percent of its market value. The turmoil in the financial market was also reflected at the end of last week in sharply increased prices for so-called credit default swaps – an insurance policy against the possibility that Credit Suisse will be unable to pay its debts at some point. Deutsche Bank analysts calculated that Credit Suisse may still need 4 billion Swiss francs (4.1 billion euros) in additional capital after the reorganization. Conversations with investors In his memo from last Friday, Körner denied that things will go so fast. According to him, there is nothing wrong with the bank’s capital ratio and liquidity position. The other executives spread the same message in a series of phone calls with key investors over the weekend, the Financial Times noted : “Credit Suisse has a strong capital and liquidity position and balance sheet. Stock price movements do not change this fact.” According to the bank executive, the pressure on the stock price was partly caused by “speculation in the media”. Also read: Topman Gottstein leaves after major loss at Credit Suisse Monday morning’s new fall in prices proved that those actions did not allay the concerns. Credit default swap prices also rose further on Monday, even reaching higher levels than during the financial crisis in 2008. Short-term (one-year) default insurance policies also rose faster than longer-term default insurance, according to the Financial Times . (within five years), further highlighting the current fears among investors. Credit Suisse has been plagued by a series of scandals in recent years. For example, the bank lost 5.5 billion euros to the collapse of the investment fund Archegos of billionaire Bill Hwang and more than 3 billion euros to the decline of the British fund Greensill Capital. An argument between two drivers turned into an espionage scandal , which led to the departure of several drivers. A version of this article also appeared in the newspaper of October 4, 2022