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July 24, 2008 11:18:20 PM CDT

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Credit Suisse Warning Revives Rogue Trader Fears

Posted Mar 21, 08 8:28 AM CDT in Crime & Courts,  Business 

(Newser) – Investment banks got a brief lift from Wall Street results this week, but surprising reports from Credit Suisse are likely to send their confidence back into the basement, the Financial Times reports. The Swiss firm issued an unexpected first-quarter profits warning yesterday—and said “intentional misconduct” from its own traders was partly to blame. Credit Suisse's shares took a 9% dive following the disclosure.

The bank's boss said the individuals concerned had been fired or suspended, but didn't comment on speculation that the traders had been cooking the books to protect their bonuses, a prospect that will raise fears of similar hidden losses at other banks. Credit Suisse wrote down almost $3 billion in assets last month as market volatility and plummeting revenues wiped out considerable profits from its private banking arm.

Sources Financial Times (UK), Evening Standard (UK)

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The Credit Suisse logo is pictured at a bank's branch in Zurich, Switzerland, Nov. 2, 2006.   (AP Photo/Keystone, Eddy Risch)
Credit Suisse has issued a surprise profits warning for the first quarter of 2008, blaming "challenging" market conditions and "intentional misconduct" from some of its traders.   (Getty Images)
"For me, it's always hard to understand why anybody would do something like that," Brady Dougan, CEO of Swiss bank Credit Suisse, said of the rogue traders.   (AP Photo/Keystone, Steffen Schmidt)
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finance  • banking  • UBS  • writedowns  • investments  • rogue trader  • Credit Suisse  • asset management


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