Credit Suisse Group AG gave a glimpse of its chaotic final weeks before a rescue last month by UBS Group AG in a first-quarter earnings report that showed operating revenue diving and customers rushing to pull deposits, the Wall Street Journal reported. The Swiss bank lost more than $2 billion from its businesses in the first quarter, but posted a prodigious net profit because of the paper gains realized from writing off $17 billion in bonds. Customers withdrew around $75 billion in deposits, in a run that the bank says has moderated since the UBS deal announcement on March 19. Revenue fell across its investment-banking and wealth-management arms and its domestic bank. Credit Suisse agreed to be bought for around $3.25 billion after losing the confidence of customers and investors. Switzerland’s government backstopped the deal with the bond write-off, as well as liquidity lines, a guarantee against $9 billion in potential losses on trading portfolios and a competition waiver letting UBS control much of the Swiss banking market. Some Credit Suisse bondholders are suing in the country over the regulator’s decision to void the $17 billion in bonds, which made up part of the bank’s capital cushion.
