The Swiss bank said it had increased a provision related to a dispute dating back to the subprime crisis by $ 850 million. It will end the fourth quarter of 2020 in the red.
Credit Suisse warned its shareholders on Friday that the bank plans to end the fourth quarter of 2020 in the red. Its accounts are indeed weighed down by the need to increase by 850 million dollars (695 million euros) a provision to cover a dispute in the United States dating back to the subprime crisis.
“Due to this increase […] we should record a net loss in the fourth quarter of 2020 ”, the Zurich-based bank said in a statement. In this court case which concerns residential securitized mortgages (RMBS) dating from 2007, the group had already provisioned 300 million dollars.