CNBC: Credit Suisse takes hit from US hedge fund; warns of ‘highly significant’ losses

CNBC reports:

KEY POINTS 

– In a trading update before the market open, the Zurich-based lender said a number of other banks were also affected and had begun exiting their positions with the firm.

 – The bank added that it would provide a further update on the matter “in due course.”

Credit Suisse warned Monday of a “highly significant” hit to to its first-quarter results, after it began exiting positions with a large U.S. hedge fund that defaulted on margin calls last week.

In a trading update before the market open, the Zurich-based lender said a number of other banks were also affected and had begun exiting their positions with the firm.

“While at this time it is premature to quantify the exact size of the loss resulting from this exit, it could be highly significant and material to our first quarter results, notwithstanding the positive trends announced in our trading statement earlier this month,” Credit Suisse said.

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