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Credit Suisse Profits Wiped Out On £1.4bn Hit

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Credit Suisse today admitted it is unlikely to make a profit in the first quarter as it uncovered SwFr2.86 billion (£1.4 billion) in asset writedowns, which the bank partly blamed on "intentional misconduct" by a group of traders.
Credit Suisse also revealed today that it will pay Brady Dougan, its chief executive who took over from Oswald Grübel, who retired last February, a total SwFr22.3 million, 90 per cent of which was a bonus payment made up of cash and shares.

Last month it emerged that a team of London-based traders, led by Kareem Serageldin, Credit Suisse's global head of synthetic collateralised debt obligations (CDOs), had been suspended as the bank conducted an investigation of a number of trades.

bad boys

http://business.timesonline.co.uk/tol/busi...icle3589104.ece

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This is front page of today's Evening Standard. Serious question :

At what point will the people rise up and start stoning these people as they go to work in the mornings, and ponce around Notting Hill in the evenings?

Genuinely, as things progress downwards and the man in the street starts getting really burned, it is 100% certain that these people will get the full force of the wrath................ even the FSA are starting to pretend they are cross. Two weeks ago some top Wall St a$%*holes got taken apart on their ethcs by Democrat Senators.........

They are being offered up by the powers that be (media, government, some of their own) as the ultimate target...........

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This is front page of today's Evening Standard. Serious question :

At what point will the people rise up and start stoning these people as they go to work in the mornings, and ponce around Notting Hill in the evenings?

Genuinely, as things progress downwards and the man in the street starts getting really burned, it is 100% certain that these people will get the full force of the wrath................ even the FSA are starting to pretend they are cross. Two weeks ago some top Wall St a$%*holes got taken apart on their ethcs by Democrat Senators.........

They are being offered up by the powers that be (media, government, some of their own) as the ultimate target...........

What does amaze me is that according to the Evening Standard these traders have caused CS to lose £1.4bn. If that's true thats more than Nick Leeson lost to bring down Barings. How come it's not headline news on the BBC website?

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What does amaze me is that according to the Evening Standard these traders have caused CS to lose £1.4bn. If that's true thats more than Nick Leeson lost to bring down Barings. How come it's not headline news on the BBC website?

Shhhhh! If we keep it quiet maybe nobody will notice the western economies are disintegrating.

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What does amaze me is that according to the Evening Standard these traders have caused CS to lose £1.4bn. If that's true thats more than Nick Leeson lost to bring down Barings. How come it's not headline news on the BBC website?

Good question. I just heard it mentioned on the ITV news and had a look on the BBC website. No mention at all. Maybe they're trying not to spook the markets by spreading irresponsible rumours.

Anyway, here's a couple of links that were about all I could find on the web:

http://www.thisismoney.co.uk/news/article....mp;in_page_id=2

http://www.thisislondon.co.uk/standard/art...ndal/article.do

A leading City investment bank has uncovered a £1.4billion scam by rogue traders desperately trying to protect their bonuses.

Credit Suisse, which employs hundreds of people in Canary Wharf, discovered the problem last month. But today is the first time it has revealed that traders had cooked the books.

...

It is believed that the Credit Suisse traders - most of whom are based in London - deliberately tried to cover up the scale of their trading losses, probably to boost their year-end bonuses.

Naughty.

Edited by Scunnered

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Update: there is a story on the BBC website from the 19th of February which mentions what I think is the same thing.

http://news.bbc.co.uk/1/hi/business/7252162.stm

Credit Suisse has suspended a "small number" of traders suspected of inflating the value of mortgage-backed bond investments by $2.85bn (£1.5bn).

The Swiss firm blamed pricing errors for its actions, which would cut $1bn from expected first-quarter profit.

...

Bear Stearns analyst Christopher Wheeler was sceptical.

He said: "Given the tentative nature of the announcement, it is not certain that we have heard the last of this issue."

"Those who thought that certain banks such as Credit Suisse were 'out of the woods' should exercise caution," he added.

How very true, Mr. Wheeler.

Edited by Scunnered

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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