Credit Suisse has been forced to suspend a group of traders after another $2.85 billion writedown, half of which the employees are accused of being responsible for, The Times reports.
“Mismarkings and pricing errors” in Credit Suisse’s Structured Credit Trading division were blamed for the writedown, which is expected to wipe a minimum of $1 billion off Credit Suisse’s first-quarter profits.
According to the Times, the bank was ignorant of these errors upon announcing its results for the year just last week.
This latest news may mean that it will need to seriously alter its both its final-quarter and annual results.
As the news broke, shares in Credit Suisse dropped by 9% to $47.12.
Credit Suisse says in a statement that it blames only a “small number of traders” for the situation and that an internal review had “resulted in the re-pricing of certain asset-backed positions in its structured credit trading business”.