Shares in Credit Suisse fell more than 8% this morning after the Swiss bank shocked the industry by saying pricing errors by its traders and adverse market developments will spark more than $2.8bn (â¬1.9bn) of fresh writedowns that will wipe $1bn off net profits in the first quarter.
Credit Suisse said today's writedowns were prompted by âan internal review that has resulted in the repricing of certain asset-backed positions in its structured credit trading business within investment banking. The current total fair value reductions, which reflect significant adverse first-quarter market developments, are estimated at approximately $2.85bn, having an estimated net income impact of approximately $1bnâ.
