Credit Suisse bank.
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LONDON — Credit Suisse warned Monday of a “highly significant” hit 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 unnamed firm.
Credit Suisse shares slid 10% at the open following the announcement.
“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…