ZCZC
BCN-03
SWITZERLAND-ECONOMY-BANKING-CREDITSUISSE
Credit Suisse issues profit warning on US fund exposure
ZURICH, March 29, 2021 (BSS/AFP) – Switzerland’s second biggest bank, Credit Suisse, warned Monday its first quarter results could be hit by its exposure to a speculative US investment fund.
Credit Suisse said the fund, which it did not name, had defaulted last week on certain margin positions held by it and other banks.
The resulting impact on first quarter earnings could be very significant, it said in a statement.
It added that it was too early to say just how large the loss could be.
Like its peers, the bank said it was trying to close its exposure to the fund and would make a further statement in due course.
Credit Suisse issued a similar profit warning earlier this month on its exposure to the collapse of British finance firm Greensill which specialised in short-term corporate loans.
BSS/AFP/MSY/1409 hrs