Skip to main content

How do you top losing the $450 million you invested in a hedge fund that doesn’t want to be a hedge fund anymore? Why, by losing a court case to the possible tune of $680 million, and then losing a whole bunch more.

The Zurich-based lender is facing costs of as much as $680 million after the New York judge presiding over the case ordered the bank and municipal-bond insurer MBIA to submit estimates of damages related to the mortgages, issued in 2007…. While the size of the new legal provision could still change, Credit Suisse plans to increase the amount it needs to set aside in the fourth quarter unless it hears from the judge in the case before the end of the year, according to a spokesman.…

Credit Suisse is among banks including Morgan Stanley, UBS Group AG and Nomura Holdings Inc. that are still defending themselves against claims on the sale of the securities that plummeted in value during the 2008 financial crisis, with billions of dollars at risk. Credit Suisse probably has the most exposure as it faces suits seeking more than $3 billion, according to Bloomberg Intelligence.

Seems that maybe Credit Suisse has been a little too Swiss, after all, a realization that came a little late for Tidjane Thiam.

Credit Suisse for the first time has reached beyond Swiss borders and proposed outgoing Lloyds Bank Chief Executive António Horta-Osório should succeed Urs Rohner…. During his time at Lloyds, the Portuguese-born Horta-Osorio, 56, won plaudits for championing mental health issues at companies after he was signed off work for two months in 2011 for stress-induced insomnia and exhaustion.

Well this sure sounds like the perfect job for him, then.

Credit Suisse Warns of $380 Million Fourth-Quarter Legal Hit [Bloomberg]
Credit Suisse breaks with tradition with Lloyds chairman pick [Reuters]


Photo: Getty Images.

Credit Suisse As Good At Haggling MBS Settlements As MBS Themselves

Thomas Gottstein has an extra $80 million to spend on, uh, other settlements, probably.

Photo: Getty Images.

Credit Suisse Basically Headquartered In Court These Days

It’s not like the bank’s got other pressing issues it needs to deal with now, right?

Photo: Getty Images.

Credit Suisse Out Another Half-Billion Dollars

That board shakeup makes ever more sense now.

This makes us a quant, right? By No machine-readable author provided. Skies assumed (based on copyright claims). [Public domain], via Wikimedia Commons

Credit Suisse To Pull BlackBerrys, Apple IIes Out Of Storage

There’s nowhere else to cut, so we hope the Swiss are good at long division.

By World Economic Forum from Cologny, Switzerland [CC BY-SA 2.0], via Wikimedia Commons

Is Anyone At Credit Suisse Not Under Surveillance?

A bit of extra vigilance might be in order, and will probably be enough to catch the hapless rent-a-cops in Tidjane Thiam’s employ.

Photo: Getty Images.

What Credit Suisse Lacks In Money Lost On Archegos It Makes Up For In Ominous Requests For Information

The Justice Department and Prudential Regulation Authority have some questions.

Photo: Getty Images.

Credit Suisse Shareholders Open Door To Lawsuits, Simultaneously Begin Filing Them

A modicum of competence and attention to fiduciary duties may be necessary to get that legal liability discharge.

By World Economic Forum from Cologny, Switzerland [CC BY-SA 2.0], via Wikimedia Commons

Tidjane Thiam Not Swiss Enough To Fix Credit Suisse

There’s something about him that just makes Swiss people uncomfortable, not that we have any idea what….