19-02-2008
Credit Suisse profits down $1b
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Credit Suisse has confirmed that asset-backed positions have been written-down within the organisation's investment banking division.
Totalling $2.85 billion (£1.46 billion), Credit Suisse has confirmed the write-down will impact upon the bank's profitability, causing a cut of approximately $1 billion in net profits for the first quarter of 2008.
In 2007, Credit Suisse, a financial services firm established in 1856, also wrote down a net total of $2 billion.
"According to the presentation they gave a week ago, their exposures to residential mortgages were 8.7 billion Swiss francs [£4.07 billion] and CDOs were 2.7 billion francs and now they have just written $2.85 billion down," said Peter Thorne, an analyst with brokerage firm Helvea, in a report by Reuters.
"This is a disaster."
Credit Suisse also confirmed that, as a consequence of an internal evaluation, a limited number of traders are responsible for errors in the field of pricing and marking.