The New York Times 'Deal Book' column reports that Rochdale Securities analyst Richard Bove has downgraded both Credit Suisse and UBS from a 'buy' to 'neutral', citing the 'deteriorating situation in Europe's financial community'.
Bove said that although both firms have been doing well from an operational standpoint, they find themselves victims of circumstances due to their locations in the heart of a troubled Europe.
Bove also told CNBC that he thought that New York State Attorney General Andrew Cuomo, whom he described as the 'father of the subprime crisis' (because, as President Clinton's Secretary of Housing and Urban Development between 1997 - 2001, he was behind the decision to encourage banks to relax lending standards in order to increase home ownership among the less-well-off), was conducting a 'hypocritical' and 'orchestrated political campaign' against the eight banks he is investigating for allegedly misleading rating agencies over mortgage security products (the banks are Citi, Credit Agricole, Credit Suisse, Deutsche, Goldman, Merrill Lynch, Morgan Stanley and UBS).
Finally, Dow Jones Newswires reports that former Credit Suisse broker Eric Butler is to remain free at large pending a decision on whether he can be given bail until his appeal is heard against his conviction on securities and other fraud charges last year in connection with the sale of auction-rate securities. Butler was given a five year prison term in January.