(Bloomberg) Credit Suisse Group AG signaled a strong start to the year as clients trade and invest more, providing relief to Chief Executive Officer Thomas Gottstein after a first year marred by a series of legacy issues. Switzerland’s No. 2 bank on Thursday posted its first quarterly loss in three years in an uneven quarter that saw it write down a hedge fund investment and set aside money for U.S. litigation. While its traders trailed Wall Street peers for a second straight quarter, equity-underwriting fees more than tripled and loan-loss provisions were less than forecast, helping to limit the damage. Gottstein has spent his first year cleaning house after taking over in the wake of a damaging spying scandal. He merged the investment banking businesses into a single division and centralized controls after questionable dealings with a top client and missteps in asset management. After a mixed end to the year, Credit Suisse just finished its strongest January in a decade, Chief Fi
(Bloomberg) Credit Suisse Group AG’s investment bankers are set for higher bonuses, with those in other divisions likely to see flat or lower payments after the overall pool for discretionary pay was cut. The Swiss bank which posted a fourth quarter loss of 353 million francs ($393 million) after hits related to U.S. legal cases and a hedge fund impairment reduced the bonus pool by about 7% for last year, Chief Financial Officer David Mathers said on a conference call. Payments will be better-than-expected for some bankers, after Bloomberg had previously reported that Credit Suisse was considering reducing the pool by at least 10%. Chief Executive Officer Thomas Gottstein echoed comments of executives at rival lenders such as Deutsche Bank AG by signaling that Credit Suisse needed to pay for performance and that it would increase bonuses at the investment banking unit. The division profited from the boom in initial public offerings and blank check companies in the fourth quarte
Credit Suisse Group AG signaled a strong start to the year as clients trade and invest more, providing relief to Chief Executive Officer Thomas Gottstein after a first year marred by a series of legacy issues.
Credit Suisse Sees Strong Start to Year After Quarterly Loss msn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from msn.com Daily Mail and Mail on Sunday newspapers.
Credit Suisse Pays $600 Million to Settle U.S. Mortgage Case
This content was published on February 12, 2021 - 14:32
February 12, 2021 - 14:32
(Bloomberg) Credit Suisse Group AG agreed to pay $600 million to settle a lawsuit over mortgage securities that collapsed in the 2008 financial crisis, an accord that locks in an expected hit to its profit.
The plaintiff, MBIA Insurance Corp., said late Thursday that it had reached an agreement, after a post-trial court decision that ordered the Swiss bank to pay about $604 million in damages. The settlement means there will be no appeal trial.
Credit Suisse is expecting to post a fourth-quarter loss when it reports earnings on Feb. 18, after setting aside $850 million for U.S. legal cases including MBIA and booking a $450 million impairment on a hedge fund investment.