dani: the big story, credit suisse ceo ulrich koerner spoke to bloomberg's francine lacqua. ulrich: this is, as you say, a big day. it's a big day also for all of our people. when we are announcing now today what is basically new credit suisse.

we asked for chief executive ulrich koerner if this is the final reset the bank?at is new in credit suisse, it is a much more simple, stabler more focused bank going forward. which will deliver sustainably profitable results to our shareholders. what is important if i may add, how we came here so to say, we took a hard look at the needs of our clients and designed everything around the needs of our clients. >> what was your overarching theme to come up with this plan? >> many different reasons. i think the bank is slightly too complicated. today the bank has parts which are not profitable enough from the shareholder perspective. that's why we came up with the need of taking very decisive actions in three different areas mainly. the one his radical restructuring of the investment bank. the second one is significantly reducing costs as we have seen. the third one importantly, further strengthening of our capital basis. why is that, because we want to go through the transformation of the next three years with a very strong capital base. and leave the transformation u

last week, chief executive ulrich koerner insisted, in a memo to staff, that credit suisse's financial restructuring plan due when the bank reports results at the end of october. here's theo leggett with more detail. there has been no shortage of the past few days of rumour, speculation, press reports about the financial health of credit suisse, the swiss banking giant. but what's actually going on? well, a lot of this stems from something that happened on friday when the cost of buying product that insure against a default by acro one went up to levels not seen since the days of the 2008 financial crisis. that prompted the chief executive of credit suisse, ulrich koerner, to write of his own stuff to reassure them that the bank's financial position was solid. but if people believe that? it seems not, because on monday the share price went down by 10% before recovering quite well. so why is that all this speculation? there is no disputing they have been any was the last couple of years, lost by $.5 million through the collapse of the new york hedge fund. it was caught up in the collaps

ulrich koerner says he needs 100 days to live ever -- deliver a new strategy.arion, get us up to what is happening with credit suisse. >> we had an unprecedented level of conversation over the weekend and speculation as to what will happen with credit suisse. elevated cvs spreads are not reassuring the market, but a lot of banks in europe have seen their cvs spreads wide and. it is not unique to credit suisse, but you have the overlay of issues they are dealing with and we are awaiting the strategic review later this month. francine: marion will continue reporting on this, and through her reporting, we found out the chief executive at the firm was a critical moment. still with us is wei li, chief investment strategist at blackrock. i don't know whether this is a critical moment for the bank, but whether there is something out there because of these perfect storms from all sides in terms of worrying about financial stability. wei: what we have seen recently is that as central banks embark on inflation fighting at all costs, something can break. it can either bre

. >> there was speculation the bet might collapse and that is the opposite of what ulrich koerner wasg to do with his don't worry memo, the second memo in two weeks to ease staff and investor concerns. the stock dropped to a fresh low late last week and then recovered. monday, it went for a wild ride down 12% in europe session before recovering. in the u.s. session it managed to close in the green after analysts made different remarks. let's look at the scandals and multibillion-dollar losses the bank has experienced just in the past two years. it has lost its market cap, cut by more than half. the exit of top level officials and talent, the loss of the rk ghosts -- arkegos debacle has been devastating at because the market to ask a lot of questions. bloomberg learned a lot of bank executives have talking points in case clients brought up the spike in credit defaults. they spiked to levels, we have been reviewing the past two days , levels not seen since the great financial crisis or gfs as we say on our charts. these are a hedge against bankruptcy. the price of insuring against defau