News of Credit Suisse's plans to restructure and buy back $3 billion in bonds has sent shares of the stock up over 10% on Friday.
DAVE BRIGGS: My play, Credit Suisse, one of the stock stories of the week, with many suggesting a Lehman-like collapse could be in the early stages. You saw Lehman trending most of the weekend and early throughout the week. It certainly has not played out that way though. The stock surging today on a planned restructuring.
"The Wall Street Journal" reporting 10 bidders including 6th Street Partners have submitted offers for the bank securitized products group. CS also announcing a surprise $3 billion buyback of its senior bonds. Analysts still suggest though, they could need around $5 billion in fresh cash to totally stabilize things. But shares have certainly circled the wagons, up more than 12% today, up more than 22% on the week. I guess for now, it looks like much ado about nothing, Rachelle.
RACHELLE AKUFFO: I mean, when you have your company's name mentioned in the same as Lehman Brothers, that's never going to be a good sign.
DAVE BRIGGS: Not a god sign.
RACHELLE AKUFFO: Obviously, at least they seemed-- at all-- they seem to at least be making some moves in the right direction, trying to quell some of the concerns here. But Seana, I don't know if this is going to be enough. Obviously, this is one of these storied banks. You would think that there could be some sort of recourse here, but still early days. But obviously, never great when you're mentioned against another name that's collapsed.
SEANA SMITH: Yeah. But I think the reaction at least at this point is it doesn't look like a Lehman, right? When you compare the strong balance sheet at Credit Suisse compared to what we saw back in 2007/2008, it certainly is a very different scenario.
And also, the buyback, the move there from Credit Suisse really shows the fact that the company is not, I guess, as financially distressed as maybe some of the initial fears were when we initially saw this reaction and saw a lot of the talk going back to last weekend. But again, the Credit Suisse clearly has a long ways to go. Will be interesting to see the moves that the company makes in order to better position the bank and also really its balance sheet here for the future.