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Fears of a global financial crisis, sparked by a drop in the value of Credit Suisse shares, have been averted slightly, with a bail out offered to the banking giant.
Switzerland's central bank has offered up to £44 billion to the country's second largest private bank following turmoil across stock markets yesterday.
The shockwaves were sparked by the Saudi National Bank ruling out any further investment in Credit Suisse, having previously been a major shareholder in the investment and lending firm.
That came hot on the heels of the collapse of the Silicon Valley Bank, which had led to some turbulent trading globally.
The Swiss National Bank said yesterday that it is willing to provide a liquidity backstop while Credit Suisse said it is working to "pre-emptively strengthen its liquidity".
European national banks are closely monitoring the situation with the UK's Chancellor, Jeremy Hunt saying the news today is "encouraging".
Express is waiting to hear from Credit Suisse about any repercussions on its local business - which employs around 160 people - following the recent issues facing the bank.
Credit Suisse is one of the oldest players in Guernsey's finance sector.
The firm's trust company roots go back to 21 February 1974, when it first established an office in the island, working from offices in St Julian’s Court.
The business name was changed to Sovereign Management Limited in 1975, before being bought out by the Swiss bank in 1991. Another name change followed as it rebranded to Credit Suisse Trustees (Guernsey) Limited.
As well as name changes, Credit Suisse has occupied many different offices in Guernsey over the past five decades with staff working in locations including Cornet Street, Albert House, Mignot Plateau and Helvetia Court.
In 2014, when the trust company marked 40 years in Guernsey, it employed "around 60 staff" with plans to "further expand its workforce". In late 2022 it was announced that Butterfield was buying Credit Suisse Trust.
Pictured: Butterfield is buying Credit Suisse Trust's business in Guernsey under plans announced in September last year.
The Butterfield deal includes the Trust business in Guernsey, Singapore and the Bahamas and it was due to be signed off during the first half of this year subject to regulatory approval. A similar deal was due to see Gasser Partner buy the Liechtenstein business on a 'rolling basis', also expected to complete this year.
In September, Credit Suisse said each party had committed to ensuring a seamless transition for clients while a "significant portion" of Credit Suisse Trust’s employees were expected to transfer to Butterfield.
The bank's Head of Investment Solutions & Sustainability, Michael Strobaek, said the company "regularly reviews its product and services portfolio to meet the evolving needs of our clients".
Butterfield’s Chairman and Chief Executive Officer, Michael Collins said in September that: “Credit Suisse is a preeminent wealth management franchise, and we are delighted to be acquiring its trust management activities in strategically important markets for our company. This transaction expands our global trust operations in Singapore, Guernsey, and The Bahamas and enhances our fee-based revenue income."
Express has asked Butterfield for an update on this purchase today.
Even with the planned sale of the Trust business, Credit Suisse will retain a presence in Guernsey with staff employed across the Wealth Management division. In October, the firm announced restructuring plans with the Guernsey office said at the time "to be central to the firm's future proofing plans".
More than 160 people were employed at the Guernsey branch of Credit Suisse, based at Les Echelons, in October last year, with a focus on wealth management.
A new Chief Operating Officer, overseeing Guernsey's Credit Suisse operations, was appointed in January 2022. Edward Daughtrey's responsibilities were said to include joining the Guernsey Branch Management Committee, chairing the Branch Operating Committee and joining the Credit Suisse UK Operating Committee.
"I have the opportunity to deepen my understanding of the unique competitive advantages our organisation enjoys here in Guernsey and look forward to making our offering even more efficient," he said in January.
"It’s important to me to focus on enabling growth for our business by developing our employee’s careers and I can’t wait to get started."
Pictured top: Credit Suisse offices in Guernsey.
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