Credit Suisse reports $1.5b trading loss

Credit Suisse Group AG, Switzerland's second-biggest bank, said 1.7 billion Swiss francs ($1.5 billion) of trading losses contributed to the company's second unprofitable quarter this year.

The Zurich-based bank booked the losses on buying and selling securities of financial institutions, convertible bonds, and on certain proprietary trading strategies. The third-quarter net loss amounted to 1.26 billion Swiss francs, in line with a preliminary estimate announced last week, the bank said yesterday.

Credit Suisse joined Citigroup Inc and Merrill Lynch & Co in reporting losses after the US nationalized Fannie Mae and Freddie Mac and the bankruptcy of Lehman Brothers Holdings Inc sent shock waves through financial markets. Credit Suisse fell as much as 7 percent in Swiss trading after Chief Executive Officer Brady Dougan said he's "cautious" on the fourth-quarter and expects markets to remain "very challenging".