What happened

Shares of the Swiss lender Credit Suisse (CS) traded more than 7% lower as of 11:04 a.m. ET today, despite the beleaguered bank tapping the Swiss National Bank for 50 billion francs of borrowings yesterday.

So what

As the banking sector in the U.S. has been hit hard, Credit Suisse has been dealing with its own issues. Earlier this week, the bank issued its annual report, which said the bank had found "material weakness" in its financial reporting in 2021 and 2022. Credit Suisse also said that client outflows had slowed but not yet reversed course.

The market also got spooked when Credit Suisse's largest shareholder, the Saudi National Bank, said it would not buy additional shares because it already owns 9.9% of outstanding shares. However, Saudi National Bank Chairman Ammar Al Khudairy said this is because of regulatory reporting requirements and has nothing to do with its view of the bank's planned transformation.

In addition to borrowing 50 billion Swiss francs from the central bank, Credit Suisse also proposed to repurchase roughly 3 billion francs of debt associated with senior debt.

"These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders," Credit Suisse CEO Ulrich Korner said in a statement yesterday.

The Swiss National Bank also noted that Credit Suisse "meets the capital and liquidity requirements imposed on systemically important banks."

Now what

Even though Credit Suisse's moves will likely help boost its financial position, investors tend to become jittery when they hear about banks looking for liquidity, especially given what has transpired over the last week.

Right now, I am not interested in being a part of Credit Suisse's transformation plan. It's too early, and there is far too much uncertainty. I would need to see evidence of client outflows reversing and the transformation starting to materialize, as well as feel better that there are no more surprises lurking, given the "material weakness" in its financial reporting.