Credit Suisse posts largest loss since 2008, hit by US settlement

Credit Suisse on Tuesday posted a steep loss after settling an investigation with the authorities in the United States in May for $2.6 billion. Shares fell about 1.7 percent in early trading in Switzerland.

Zurich-based Credit Suisse reported a net loss of 700 million Swiss francs – the largest loss for the bank since 2008 – sharply lower compared with 1.05 billion-franc net profit last year.

- Pretax profit for the strategic unit of its investment bank fell 11% to 1 billion francs

- Total strategic sales and trading revenue fell 7%

- Net new assets from wealth management clients were 7.4 billion-franc, from 7.7 billion-franc   a year earlier

In May credit Suisse reached an agreement with the U.S. authorities for $2.6 billion, which is the highest in a U.S. criminal tax investigation to date. The U.S. settlement reduced Credit Suisse`s capital ratio, a key measure of financial stability that is closely watched by regulators.