Credit Suisse announced write-downs of 2.8 billion today, on what they call "pricing errors" of their assets by their traders. Whats troubling to me about this is that they reported earnings less than a week ago, and no mention of this? You can't tell me they just came up with it this morning. This is a company that has been praised for its ability to avoid CDO and sub-prime problems. I'm not that concerned if they took some losses, but more concerned with their transparency here. Maybe these balance sheets are that much of a mystery, and in that case, how could investors have much confidence going forward in the next couple of quarters? As someone looking to buy the stock, I'll actually benefit from this uncertainty as the stock will probably be marked down even further.
This also comes on the heals of Qatar disclosing that they are building a position in the stock last week. I wonder how they are feeling on the news of this report?