C Suisse thought poised to report big loss

Credit Suisse Canary Wharf

Credit Suisse is poised to report its biggest quarterly loss since the collapse of Lehman Brothers after being fined $2.6bn for helping American clients evade taxes.

Bloomberg News reports that the bank will Tuesday post a loss of $781 million, hurt by a $1.8bn charge linked to the fine, according to the average estimate of seven analysts surveyed by Bloomberg. By contrast, larger competitor UBS may log an $904m quarterly profit next week.

Credit Suisse’s loss would be the biggest since the fourth quarter of 2008. Uncertainty surrounding the outcome of the litigation and the bank’s guilty plea to criminal charges slowed the flow of client money into the wealth management unit. Both firms have sought to expand in that area as stiffer regulatory requirements introduced in the wake of Lehman’s collapse erode returns from investment banking.

'The insecurity before and after the guilty plea certainly didn’t make the business easier', said Peter Stenz, a fund manager at Swisscanto Asset Management who helps manage $57.8bn, including Credit Suisse shares.

To access the complete Bloomberg News article hit the link below:

Credit Suisse Set for Biggest Loss Since 2008 on Tax Fine

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