US markets remain subdued after the announcement of Credit Suisse’s emergency rescue package. The Swiss bank announced a $5.5 billion capital injection from a group of investors, including Singapore’s sovereign wealth fund GIC, as well as a $2 billion cost-cutting plan.
The move comes as Credit Suisse struggles with a heavy debt load and declining profits. Investors are now waiting to see what other measures the bank may take to shore up its finances. The market reaction has been muted, however, as investors remain unconvinced of the bank’s long-term prospects.