First Deutsche Bank, now Credit Suisse: according to Bloomberg, the second largest Swiss bank, is also preparing to take advantage of euphoric markets and is considering selling stock valued at more than 3 billion Swiss francs ($3 billion) as it seeks to boost capital levels. The news sent the stock sliding.

Bloomberg adds that Credit Suisse could seek to raise 10 percent of its market value, or about 3.1 billion francs, through an accelerated stock sale to institutions, which wouldn’t need investors to sign off. The lender is also speaking with advisers about raising as much as 5 billion francs, subject to shareholder approval, the people said.

The share sale would be an alternative to Swiss unit IPO, BBG writes adding that the bank said to discuss raising up to CHF5B

The fundraising, which could happen in the first half of the year, would replace plans for an initial public offering of the company’s Swiss unit, they said. No final decisions have been made and Credit Suisse may decide against a deal, the people said. Meanwhile, preparation is continuing on the IPO, one of the people said.

Investors are returning to European banks in the belief economic growth and rising interest rates could strengthen earnings. German rival Deutsche Bank AG said this month it would raise 8 billion euros ($8.6 billion) by selling stock to strengthen its capital reserves and boost growth. Italian lender UniCredit SpA successfully raised 13 billion euros from investors in February.

While we don't know how much TLTRO Credit Suisse was allotted in today's final ECB "free money" operation, we wonder why the bank doesn't simply use the zero-cost proceeds to buy its own stock.