Credit Suisse slides 8% as markets fret about the risk of a Lehman Brothers-style collapse

• Credit Suisse shares fell 7.8% in early-morning trading on Monday.
• Markets are fretting about the Swiss bank collapsing ahead of restructuring plans.

Credit Suisse shares fell nearly 8% on Monday as investors worried about the bank suffering a Lehman Brothers-style collapse.

Swiss-listed shares dropped 7.8% to 3.67 francs ($3.71) in European trading hours, having fallen over 12% earlier in the session.

Investors are fretting about the bank's overall health as it finalizes a restructuring plan due to be announced on October 27.

On Friday there was a sharp rise in spreads on the bank's credit default swaps (CDS), which protect investors if it defaults on its debts.

Senior executives spent the weekend trying to reassure large clients about the bank's liquidity and capital position, according to a report by the Financial Times.

Credit Suisse shares have fallen 60% year-to-date as investors fret about the bank collapsing in a similar manner to Lehman Brothers, the investment bank whose 2008 bankruptcy filing heralded the start of the financial crisis.

In an internal memo seen by Insider, Credit Suisse chief executive Ulrich Körner described the next few weeks as a "critical moment for the whole organization."

"No doubt there will be more noise in the markets and the press between now and the end of October," he said in a note to the bank's employees. "All I can tell you is to remain disciplined and stay as close as ever to your clients and colleagues."

"I trust that you are not confusing our day-to-day stock price performance with the strong capital base and liquidity position of the bank," Körner added.

Credit Suisse declined a request for comment from Insider.