Credit Suisse profits down on expectations

20 March 2008

Credit Suisse has announced that its 2007 profit was wrongly inflated due to intentional misconduct by former traders.

Profit was actually six per cent lower than reported, down by 789 million Swiss francs to 7.76 billion or £3.6 billion.

This revelation comes after an internal review of securities trading led to a reduction of investment valuation by 2.86 billion Swiss francs.

After apparently over valuing bond investments attached to the mortgage market in the US, the traders in questions have either been suspended or sacked by Credit Suisse.

"This incident is unacceptable and does not represent the high standard of Credit Suisse," stated its chief executive Brady Dougan.

However, despite the write-down in profits being less than expected, the bank has said that it is unlikely to make a profit in 2008’s first quarter.

Even though profits were looking healthy up to February, the turbulent times in March have led the company to make this declaration.

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