KPMG auditors have shot down bond valuations made by traders at Credit Suisse.

The Big Four firm refused to sign off valuations made by staff at the investment bank for the listing of a bond issue, as its audit exposed the fact that traders had overvalued the bonds by £1.5bn.

Credit Suisse made the announcement as part of statutory disclosure requirements relating to the listing of the bond, which was eventually valued at £1bn. The traders involved have been suspended.

Bear Stearns banking analyst Chris Wheeler told the Daily Telegraph : 'Those who thought that certain banks such as Credit Suisse were out of the woods should exercise caution.'

Further reading:

Balance sheet concerns plunges Credit Suisse and UBS shares