Credit Suisse Sees First-Quarter Loss After Writedown
March 20 (Bloomberg) -- Credit Suisse Group said it will probably have a loss this quarter for the first time in almost five years as a result of ``difficult'' markets and writedowns on debt securities that were intentionally mispriced by traders.
Writedowns of $2.65 billion will be spread over the fourth quarter and first three months of 2008, the Zurich-based bank said today in an e-mailed statement. That cut net income by 789 million francs ($788 million) to 540 million francs for the fourth quarter and to 7.76 billion francs for the full year 2007.
Credit Suisse said it was profitable through the end of February, though it will probably have a loss for the quarter because of ``difficult market conditions in March.'' An internal review found that the pricing errors, which were made ``by a small number'' of traders, were intentional and the employees have since been fired or suspended.
``This incident is unacceptable,'' Credit Suisse Chief Executive Officer Brady Dougan said in the statement. ``We are taking strong action to remediate and move forward.''
BLOOMBERG
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