Mortgage-Linked Hits Hurt Credit Suisse

A couple of billion dollars in largely mortgage-related writedowns during the fourth quarter contributed to a year-to-year decline in quarterly profit at Credit Suisse, Zurich, but the Wall Street firm's corporate parent is doing well relative to its peers. The company earned about $1.2 billion on a net basis in the fourth quarter, which is a 72% drop from earnings in the fourth quarter of 2006 and a 49% decline if discontinued operations are removed from the equation. "Our focus on risk management enabled us to perform relatively well, limiting losses and exposures in investment banking related to the subprime mortgage market," the company said.