Reuters: Regulatory News: SNB not demanding cap hike for C.Suisse-paper

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SNB not demanding cap hike for C.Suisse-paper Jul 2nd 2012, 15:19 Mon Jul 2, 2012 11:19am EDT * SNB wants Credit Suisse to boost total capital position * CoCo bonds already issued count, rather than planned ones * Jordan says SNB report taken out of context ZURICH, July 2 (Reuters) - The Swiss National Bank (SNB) is not demanding Credit Suisse raise new equity to boost its capital, and would count contingent convertible bonds or CoCos if they had already been issued, Chairman Thomas Jordan was quoted as saying on Monday. The SNB sent Credit Suisse shares tumbling 10 percent on June 14 when it said the bank should boost its loss-absorbing capital base this year by cutting risk, suspending dividends or issuing shares. "We did not demand the issue of shares for Credit Suisse but the improvement of the capital situation overall," Jordan told Germany's Handelsblatt business daily, in an interview released ahead of publication on Tuesday. "So-called CoCo bonds also count for us as loss-absorbing capital. But we only consider bonds already issued, which can really already absorb losses, and not those that are planned in the future," he added. Two Swiss newspapers have reported Credit Suisse is working on bringing forward from 2013 the planned issue of 6 billion Swiss francs ($6.3 billion) of CoCos to the Olayan family and Qatari fund, the bank's biggest existing shareholders. Credit Suisse has declined to comment on those reports. Asked whether the SNB had made the situation harder for the bank and its Chief Executive Brady Dougan, Jordan said the SNB's financial stability report had been taken out of context. "It is a shame that our report was received very one-sidedly in the media. We also pointed to the strengths of our big banks, for example that the Swiss banks are hardly engaged in the peripheral states of the euro zone and have done a lot to cut risk already," he added. Link this Share this Digg this Email Reprints

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