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Credit Suisse to post $2.5B loss
ZURICH, Switzerland (CNN) -- Credit Suisse Group said on Tuesday it expects to post a 2002 net loss of about 3.4 billion Swiss francs ($2.5 billion) as it sets aside money to settle claims it misled customers. The company has been forced to set aside $450 million, which would push it towards a fourth-quarter loss of 1 billion francs, to meet possible claims that its investment bank Credit Suisse First Boston published biased stock research and other legal issues. Switzerland's second-largest bank has already puts aside $150 million to settle claims with U.S. regulators for the way it handled stock market floatations, although the bank it agreed to the fines with out admitting or denying it was in the wrong. "While we expect challenging market conditions to continue throughout 2003, we are working to restore the Group to profitability," Co-Chief Executive John Mack said in a statement. "At the same time, we are pursuing a range of aggressive measures across the group to continue adapting our structure to this tough business environment, having already eliminated 3 billion in costs at Credit Suisse First Boston since fall 2001." "Further, the recent settlement in principle with the U.S. regulators allows us to put this matter behind us." The bank said its struggling insurance unit Winterthur had returned to profitability in the fourth quarter. CS Group made a record 2.1 billion franc loss in the third quarter because of losses at its ailing insurance business. Zurich-based CS, which made the unscheduled statement before results due on February 25, said it aims to return to profit in 2003. Its New York-based Credit Suisse First Boston expects to report a net loss of about $790 million for the fourth quarter and a full-year net loss of some $1.2 billion.
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