Credit Suisse warned of reporting a Q4 loss after incurring fresh legal costs and adding that business in its trading and wealth management divisions slowed, with an overall drop in assets. Credit Suisse will make a fresh legal provision of CHF 500mn ($545mn) to settle legacy cases related to the bank, on track for an overall quarterly loss of around CHF 1.6bn ($1.75bn). Besides, a slowdown in Asia and reversion to more normal trading conditions as compared to a stellar 2020 and 2021 will result in weaker results. “Combined with the reduction in our overall risk appetite, including our decision to substantially exit our prime services business, this has resulted in a loss for the fourth quarter 2021 in the Investment Bank division”, Credit Suisse said.
Credit Suisse’s dollar bonds were slightly lower with its 5.1% Perp down 0.3 points to 97.19, yielding 5.54%
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