C Suisse reduces profit on legal provision

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Credit Suisse took a provision of $290m for mortgage-related litigation just days after the U.S. Justice Department fined Morgan Stanley.

Bloomberg News reports that the bank cited investigations in the U.S. relating to mortgages as it booked the charge that reduced fourth-quarter profit by 25%, Credit Suisse said in a statement Friday.

Credit Suisse increased legal provisions after Morgan Stanley agreed to settle probes into its creation and sale of residential mortgage-backed securities for $2.6bn February 25.

JPMorgan, Bank of America and Citigroup previously settled with federal and state authorities over the probes, agreeing to pay a total of more than $35bn in cash and consumer relief.

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

Credit Suisse Reduces Quarterly Profit 25% on $290 Million Legal Provision

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