Comments on: Credit Suisse Bombshell: Surprise Warning of 1Q Loss http://www.nakedcapitalism.com/2008/03/credit-suisse-bombshell-surprise.html Fri, 12 Mar 2010 01:00:59 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/03/credit-suisse-bombshell-surprise.html#comment-5563 Anonymous Fri, 21 Mar 2008 15:20:00 +0000 http://www.nakedcapitalism.com/2008/03/credit-suisse-bombshell-surprise-warning-of-1q-loss/#comment-5563 Is nobody making the bonus connection?<br/><br/>CS allowed traders to write their own bonus, because they valued inventory according to their own traders' estimates.<br/><br/>These guys are "sophisticated", No?<br/><br/>John Is nobody making the bonus connection?

CS allowed traders to write their own bonus, because they valued inventory according to their own traders’ estimates.

These guys are “sophisticated”, No?

John

]]> By: Yves Smith http://www.nakedcapitalism.com/2008/03/credit-suisse-bombshell-surprise.html#comment-5513 Yves Smith Thu, 20 Mar 2008 21:28:00 +0000 http://www.nakedcapitalism.com/2008/03/credit-suisse-bombshell-surprise-warning-of-1q-loss/#comment-5513 Jim,<br/><br/>Over $5 billion writedowns for a single quarter have become not uncommon, witness UBS, SocGen, Merrill, Cit, AIG, Morgan Stanley. I hate to say it, but by the standards of credit market carnage (or poor management of traders), $2.65 billion over two quarters is not bad. Jim,

Over $5 billion writedowns for a single quarter have become not uncommon, witness UBS, SocGen, Merrill, Cit, AIG, Morgan Stanley. I hate to say it, but by the standards of credit market carnage (or poor management of traders), $2.65 billion over two quarters is not bad.

]]> By: Jim Driscoll http://www.nakedcapitalism.com/2008/03/credit-suisse-bombshell-surprise.html#comment-5512 Jim Driscoll Thu, 20 Mar 2008 21:04:00 +0000 http://www.nakedcapitalism.com/2008/03/credit-suisse-bombshell-surprise-warning-of-1q-loss/#comment-5512 <i>On the scale of recent Wall Street woes, however, the damage is small in absolute terms. The bank is taking writedowns of $2.65 billion</i><br/><br/>We apparently have different definitions of what is small in absolute terms.<br/><br/>In fact, this loss isn't even comparably small, unless you're comparing it to the loss experienced by Bear Sterns stockholders. That's the only loss recently which would dwarf this - all the other bank losses recently were comparable. On the scale of recent Wall Street woes, however, the damage is small in absolute terms. The bank is taking writedowns of $2.65 billion

We apparently have different definitions of what is small in absolute terms.

In fact, this loss isn’t even comparably small, unless you’re comparing it to the loss experienced by Bear Sterns stockholders. That’s the only loss recently which would dwarf this – all the other bank losses recently were comparable.

]]> By: Francois http://www.nakedcapitalism.com/2008/03/credit-suisse-bombshell-surprise.html#comment-5498 Francois Thu, 20 Mar 2008 14:39:00 +0000 http://www.nakedcapitalism.com/2008/03/credit-suisse-bombshell-surprise-warning-of-1q-loss/#comment-5498 "The bank found intentional mispricings by a small number of traders..."<br/><br/>"Intentional mispricings"??<br/><br/>Are we to understand this euphemism along the same framework as ultra long-term unilateral borrowing" = bank robbery?<br/><br/>Now that would be plenty reassuring wouldn't it? “The bank found intentional mispricings by a small number of traders…”

“Intentional mispricings”??

Are we to understand this euphemism along the same framework as ultra long-term unilateral borrowing” = bank robbery?

Now that would be plenty reassuring wouldn’t it?

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