Credit Suisse warns of significant losses
The bank said it would provide an update on the matter in due course
Stocks impacted: Credit Suisse Group AG (CSGN)
Switzerland’s second-biggest lender warned on Monday that its first-quarter results could suffer a “highly significant” hit after it began exiting positions with a large U.S. hedge fund that defaulted. The un-named hedge fund defaulted on margin calls made last week by Credit Suisse and other banks following the failure of the fund to meet margin commitments. The bank said it would provide an update on the matter in due course. Credit Suisse shares slid over 10% at the open following the announcement. In a similar fashion, Nomura also issued a trading update. The bank warned of a “significant loss” at one of its U.S. subsidiaries resulting from transactions with a client stateside. Nomura was evaluating the potential extent of the loss, estimated at $2 billion.
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