Credit Suisse Shares Fall After Writedowns Report
- Jan 07, 2008
Zurich–Shares of Swiss bank Credit Suisse–previously thought to be safe from the U.S. subprime mortgage crisis–dropped by approximately 3 percent Monday after a Swiss newspaper said the bank faced commercial mortgage and leveraged-finance writedowns.Credit Suisse, known for coordinating leveraged loans to fund investor buyouts of companies, frequently arranges commercial mortgage-backed securities (CMBS). The bank has declined to publicly state its CMBS exposure but has said it is manageable, The New York Times reported Monday. In addition, the European commercial property market is not at risk as the U.S. subprime mortgage market was, Credit Suisse said.A Credit Suisse spokesman declined to comment on the Sonntag newspaper report.By the end of December, major banks had announced more than $50 billion of subprime-related writedowns, according to Reuters.