KPMG uncovers Credit Suisse £1.5bn bond inflation
Big four firm refuses to sign off on investment bank's bond issue after traders value investments too highly
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
