No profit for Credit Suisse in first quarter of 2008

by Richard Kilner

Story link: No profit for Credit Suisse in first quarter of 2008

Today Credit Suisse suffered another financial hit from the subprime mortgage crisis, modifying figures released last month to record a reduced profit for 2007 of 7.76bn swiss francs.

The Swiss banking giant has also stated it believes it will not record a profit in the first quarter of 2008.

In February, when the initial profits estimate was published, the bank had given assurance that it had withstood the worst effects of the global financial turmoil, increasing profits by 3%, contrasting starkly with the 6% decrease of today’s figures.

The bank also said that price fixing errors had been caused only be a small number of traders who had been suspended or fired.

Brady Dougan, the firm’s chief executive, described the behaviour as unacceptable, adding that it did not come up to the high standards demanded by the bank.