Zurich, Credit Suisse reported today net loss for 2016 of 2.4 billion Swiss francs.
The losses were mainly a result of its agreement with US authorities on settlements over the bank’s role in the sub-prime mortgage crisis of 2008. Switzerland’s second largest bank said in its statement that the losses were smaller than those of the previous year, when they reached 2.9 billion Swiss Francs.
Last month, the US authorities announced a $5.28 billion settlement with Credit Suisse over its role in the sale of the kind of toxic securities that led to the global financial crisis of 2008. Federal prosecutors say Credit Suisse has admitted that between 2005 and 2007 it knowingly deceived investors in the sale of complex securities derived from residential mortgages.
The system-wide failure of such securities in 2008 caused a cascading wave of bankruptcies and crises that touched off the Great Recession, which cost tens of millions of jobs around the world.
Source: Qatar News Agency