Credit Suisse pumps 2 billion francs into Winterthur. (Companies).Credit Suisse Group, Zurich, Switzerland, said it poured 2 billion Swiss francs (about $1.3 billion) into its troubled Winterthur Winterthur (vĭn`tərt  r'), city (1990 est. pop. 85,200), Zürich canton, N Switzerland. An industrial center, it is an important rail junction and has manufactures of railroad equipment (including locomotives and diesel engines) and cotton textiles. insurance subsidiary, adding that it expects its third-quarter results to be hit by a "significant net loss" in the insurance business. Winterthur received 600 million francs in equity capital, and 1.4 billion francs from a direct capital injection. "Winterthur has substantially reduced the equity exposure of its investment portfolio to mitigate the impact of international equity market volatility on its solvency Solvency The ability of a corporation to meet its long-term fixed expenses and to accomplish long-term expansion and growth.Notes: The better a company's solvency, the better it is financially. When a company is insolvent, it means that it can no longer operate and is undergoing bankruptcy. See also: Bankruptcy, Chapter 11, Chapter 7, Expense capital as far as possible," said Credit Suisse. "However, related hedging costs and further realized losses again impacted Winterthur's capital base Capital Base 1. The capital acquired during an IPO, or the additional offerings of a company, plus any retained earnings.2. An initial investment plus subsequent investments made by an investor into their portfolio. Notes: 1. This is essentially the money contributed by the shareholders who first purchased shares in the company plus retained earnings.2. Capital base is important because it provides a benchmark when measuring returns. in the third quarter of 2002." The bank said further action might be taken to improve Winterthur's solvency capital, "in line with market developments ." Credit Suisse Group is adequately capitalized, the company said. |
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