The 166-year-old lender Credit Suisse said it will borrow up to $53 billion from Switzerland's central bank after investors dumped its stock, fearing it would run out of money.
The bank will borrow the funds under a covered loan facility and short-term liquidity facility after the price of insuring the bank's debt against a default has now skyrocketed.
The goal is to "support Credit Suisse's core businesses and clients" as the lender tries to "create a simpler and more focused bank built around client needs," it said in a press release.
Credit Suisse made the announcement early on Thursday saying it would borrow the equivalent of up to 50 billion Swiss francs in Europe, which equals nearly $54 billion.
The crisis was prompted largely after a comment from the chairman of the Saudi National Bank, during a television interview. Ammar al-Khudairy, who is the bank's largest shareholder, said the state-owned Saudi bank did not plan on depositing any more money into Credit Suisse.
Later he revised that statement saying he would not deposit more than the 9.9 percent that it owned, citing regulatory rules.
The news prompted investors to hastily sell off shares of Credit Suisse.
