Credit Suisse shocked investors on Tuesday by revealing $2.85bn of losses on structured credit positions caused partly by “pricing errors” by some of its traders. Credit Suisse said it had suspended some traders in connection with the writedown and was conducting a review. The FT learnt that the Swiss bank has also suspended its global head of CDOs, Kareem Serageldin. Credit Suisse said the losses would dent Q1 net income by an estimated $1bn, although it would still make a Q1 profit. However, its 2007 results were also being reviewed. The bank made net income of SFr8.55bn ($7.8bn) last year. Lex says while full disclosure by banks is welcome, it is only of any use if reliable; how can banks manage their own risks, it asks, if they can’t work out exactly what their positions are?

This entry was posted by Gwen Robinson on Wednesday, February 20th, 2008 at 5:49 and is filed under Capital markets. Tagged with credit suisse. Edit this entry.