Swiss Banks Face Uncertainty Amid Capital Infusion and Credit Crisis

Shares of First Republic Bank were volatile as the regional lender struggled to raise capital amid worries that it may need to downsize or seek government support. Major banks and private equity firms have so far balked at infusing capital on fear of losses on the bank's loan book and investment portfolio following a rapid rise in interest rates. The bank is examining how it can downsize and sell parts of its business, including some of its loan book, in a bid to raise cash and cut costs.