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Thursday, July 24, 2025

Credit Suisse posts big loss after US tax settlement

by

20140722

Cred­it Su­isse Group AG will quit com­modi­ties trad­ing af­ter chalk­ing up its biggest loss since the fi­nan­cial cri­sis in 2008, the re­sult of a 1.6 bil­lion Swiss franc (US$1.78 bil­lion) fine from US au­thor­i­ties for help­ing its clients evade tax­es.The Swiss bank re­versed a re­cent vow to stick with its com­modi­ties unit, and thus joins the ranks of trad­ing firms an­swer­ing reg­u­la­to­ry de­mands for more cap­i­tal by sig­nif­i­cant­ly re­duc­ing or even shut­ter­ing their nat­ur­al re­source trad­ing arms.

Cred­it Su­isse's fixed in­come unit out­shone both its wealthy client unit and its US ri­vals with a 4 per cent rise in sales and trad­ing, flout­ing its own down­beat guid­ance in May. That com­pares to drops of at least ten per cent at Amer­i­can banks like Gold­man Sachs and JP­Mor­gan last week.

Cred­it Su­isse said the com­modi­ties cuts, set to save US$75 mil­lion, would al­low re­sources and funds to be re­as­signed to its pri­vate bank, which dis­ap­point­ed in­vestors with a 39 per cent drop in rev­enue and weak­er mar­gins, and swung to a loss due to the fine.

Reuters


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