Credit Suisse Canada will pay $165,000 to the enforcement arm of Canada's investment regulator as a settlement for the bank's admitted failure to perform required checks of trading activity in 2007.
Credit Suisse Groupe AG said it would replace its Chief Financial Officer Renato Fassbind with insider David Mathers
Credit Suisse announced the launch of a new Exchange Traded Note ("ETN") linked to the proprietary Cushing 30 MLP Index. The launch of the Cushing 30 MLP Index was previously announced on January 6, 2010. Credit Suisse is the issuer of the ETN, which began to trade under the ticker MLPN today
Defense attorneys want a federal judge to throw out a $24 billion predatory lending lawsuit filed against Credit Suisse Group by investors in broke resorts in the West and the Bahamas. Original lawsuits were filed in January by investors in Idaho's Tamarack Resort, the Yellowstone club in Montana, Nevada's Lake Las Vegas resort and Ginn Sur Mer Resort in the Bahamas. Investors claimed that Credit Suisse planned to make money on both ends of the resort lending deals by first collecting millions of dollars in loan fees and later by foreclosing and flipping resorts. CS contends that it made no such loans.
Credit Suisse will cut its total bonus payments around the world by 5% in 2010 to finance Britain's new tax on bank bonuses. The bank will also cut bonuses for its top managers in Britain by 30%. The British government will also impose a one-timie 50% levy on bank bonuses above 25,000 pounds (US$40,700)
Credit Suisse will cut its total bonus payments around the world by 5% in 2010 to finance Britain's new tax on bank bonuses. The tax consists of a 50% levy on bank bonuses above 25,000 pounds (US$40,700). The bank would also cut bonuses for its top managers in Britain by 30% in 2010.
On August 13, the U.K.'s Financial Services Authority announced that it had fined Credit Suisse $10.7 million, making CS the only i-bank to ever be fined twice by the FSA. The reason for the fine was a lack of oversight and potential misconduct by CS employees, which the FSA says led to a $2.7 billion write-down not being announced until just after the company reported full-year '07 results.
On July 24, Credit Suisse reported earnings of $1.16 billion (1.22 billion CHF) for the second quarter of 2008, down 62% from the same period in 2007. Despite the sharp decline, Credit Suisse beat consensus analyst estimates and improved from its net loss of 2.1 billion CHF. Write downs for the quarter were an "immaterial" $21.3 million (22 million CHF), compared to $5. billion in the first quarter of 2008.
The Swiss central bank demanded that investment banks Credit Suisse and UBS maintain higher capital stocks. Given the ongoing credit crunch, the central bank believes that current capital requirements are too low to ensure that the firms can continue operations as normal. UBS and Credit Suisse are a huge part of the Swiss economy, so ensuring their viability is of interest to the government as well.
In its third-quarter earnings statement released on November 1, Credit Suisse announced that it had written down $1.9 billion in debt. Around the same time, Citibank announced that it might write down as much as $11 billion more in loans, on top of the over $6 billion it wrote down for its third-quarter earnings release. As more firms continue to write down debt, uneasy investors looking to limit further exposure to the fallout have been selling stock in financial firms such as Credit Suisse.
On November 1, Credit Suisse released its earnings statement for the third quarter of 2007, which showed an 31% drop in net income from the same quarter in 2006. According to the release, the firm's profits from investment banking were almost completely wiped out by large write-downs of certain debt holdings like mortgage-backed securities and collateralized debt obligations, whose market values had depreciated significantly.
Despite stress from problems in the U.S. subprime lending industry, Credit Suisse (CS) and the banking industry performs well, due mainly to earnings growth and a strong labor market. Upgrades from analysts at Deutsche Bank contribute to the rise in CS's stock price.
Stock prices drop after reports circulate that Credit Suisse will outsource up to 70% of its information technology (IT) jobs to low-wage countries, mainly in Asia. Credit Suisse official denies the report, and the price begins to recover by early March.
