Credit Suisse: warns of loss in fourth quarter
(CercleFinance.com) - Credit Suisse on Friday warned that additional provisions due to a long court battle with US bond insurer MBIA will result in a fourth-quarter net loss.
The warning comes on the heels of a civil legal dispute that has dragged on in New York since 2009 about warranties regarding a US residential mortgage backed security (RMBS) issued in 2007, shorty before the subprime crisis.
Credit Suisse - which set aside 300 million dollars in provisions in connection with the case - said it now expects to increase write-offs for the MBIA case and other RMBS-related cases by a total of 850 million dollars.
The Swiss private bank said it also plans to book an impairment charge in respect of its non-controlling stake in York Capital Management, as announced in December.
The Zurich-listed shares were down almost 2% on Friday morning after this announcement.
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