Credit Suisse to report biggest loss since 2008 linked on Tax Fine
Credit Suisse Group AG (CSGN) is poised to report its biggest quarterly loss since the collapse of Lehman Brothers Holdings Inc. after being fined $2.6 billion for helping American clients evade taxes.
The bank will tomorrow post a loss of 701 million Swiss francs ($781 million), hurt by a 1.6 billion-franc charge linked to the fine, according to the average estimate of seven analysts surveyed by Bloomberg.
Credit Suisse’s loss would be the biggest since the fourth quarter of 2008. Uncertainty surrounding the outcome of the litigation and the bank’s guilty plea to criminal charges slowed the flow of client money into the wealth management unit. Both Zurich-based firms have sought to expand in that area as stiffer regulatory requirements introduced in the wake of Lehman’s collapse erode returns from investment banking.
Source: Bloomberg
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