Another 'tip of the iceberg' follow up story related to the NR debacle:
http://news.bbc.co.uk/1/hi/business/7252162.stm
http://news.bbc.co.uk/1/hi/business/7252162.stm
Credit Suisse has suspended a "small number" of traders suspected of inflating the value of mortgage-backed bond investments.
The Swiss firm earlier said it would have to cut the value of these securities by $2.85bn (£1.5bn), blaming pricing errors.
It also attributed "adverse market conditions" for the write-down.
Credit Suisse said its first-quarter profit would be $1bn lower than forecast as a result.
The announcement came amid an internal review, which the bank said was continuing.
The revelations stunned many analysts because they came a week after the Zurich-based firm posted its results for the last three months for 2007.
At the time, it reported minimal damage from the US sub-prime crisis, with losses of 2bn Swiss francs last year, less than it originally expected.
"This is a disaster. This could be the tip of the iceberg," said Helvea analyst Peter Thorne.
"According to the presentation they gave a week ago, their exposures to residential mortgages was 8.7bn Swiss francs and collateralised debt obligations was 2.7bn francs, and now they have just written $2.85bn down."
The Swiss firm earlier said it would have to cut the value of these securities by $2.85bn (£1.5bn), blaming pricing errors.
It also attributed "adverse market conditions" for the write-down.
Credit Suisse said its first-quarter profit would be $1bn lower than forecast as a result.
The announcement came amid an internal review, which the bank said was continuing.
The revelations stunned many analysts because they came a week after the Zurich-based firm posted its results for the last three months for 2007.
At the time, it reported minimal damage from the US sub-prime crisis, with losses of 2bn Swiss francs last year, less than it originally expected.
"This is a disaster. This could be the tip of the iceberg," said Helvea analyst Peter Thorne.
"According to the presentation they gave a week ago, their exposures to residential mortgages was 8.7bn Swiss francs and collateralised debt obligations was 2.7bn francs, and now they have just written $2.85bn down."
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