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Credit Suisse (CS) Stock Down in Pre-Market Trading on Expected Capital Raise

NEW YORK (TheStreet) -- Credit Suisse (CS - Get Report) stock is falling by 4.70% to $24.13 in pre-market trading on Thursday, as the company prepares to launch a major capital raise when CEO Tidjane Thiam announces his new strategic plan on October 21, sources told the Financial Times.

The exact amount of the capital raise was not specified, but people briefed on the plan noted a Goldman Sachs poll in which most investors forecast the bank will raise more than SFr 5 billion in equity, with the capital probably going toward absorbing restructuring losses.

To meet regulators' demands, Credit Suisse will need higher capital ratios. An expected increase to minimum capital ratios by Swiss authorities could weigh on Credit Suisse more than on competitor UBS (UBS), as Credit Suisse has a common equity tier one capital ratio of 10.3% compared to UBS's 13.5%, the Financial Times reports.

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Further, the upcoming strategic plan is expected to include decentralizing...