Credit Suisse is busy investigating the extent of those errors and mispricing of assets which resulted in that unexpected $2.85bn asset write down announced Tuesday. And, although fraud cannot be ruled out at this stage, there is said to be currently no evidence to suggest that this might have been the case.
Reuters reports that Bank of Montreal is to take write downs of some $324m in the first quarter, relating to trading losses and valuation adjustments at its BMO Capital Markets division.
Peter Wuffli (UBS), Stan O'Neal (Merrill Lynch) and Chuck Prince (Citi) all stepped aside or were fired in the last year or so. Jim Cayne at Bear Stearns was kicked upstairs to the Chairman's office. Will Brady Dougan, Credit Suisse's popular CEO be next to suffer at the hands of the US mortgage securities crisis ?
The wags are at it already. See the photo immediately to the right.
Well, another shoe dropped Tuesday, as Credit Suisse announced that it had overvalued its asset backed securities by at least $2.85bn, blaming 'mismarkings and errors' by 'a small number of traders' in structured credit trading. It's now the turn of staff over at rival UBS to smirk - at least for now, the heat is off their firm.
Here's another one of those 'messy' banking stories that our readers appear to love.
Here are some corporate buzzwords which we found in Luke Johnson's excellent book 'The Maverick':
Here's the latest missive from our 'Highly Placed Professional:
Reuters reports that Credit Suisse CEO Brady Dougan predicts a relatively swift end to the credit crunch and current market instability.
Bloomberg reports that Moussa Bakir, the Fimat broker drawn into the SocGen $7.1bn rogue trading scandal after it was discovered that he was on friendly terms with Jerome Kerviel, the trader at the centre of the affair, has sued unidentified parties, claiming that the transcripts of e-mail exchanges between him and the trader were falsified.