Credit Suisse Bank.

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LONDON – Credit Suisse warned Monday of a “highly significant” decline in first quarter results after starting exiting positions in a large US hedge fund that defaulted on margin calls last week.

In a trade update prior to market opening, the Zurich-based lender said a number of other banks were also affected and had begun to leave their positions with the firm.

“While it is premature at this point to quantify the exact size of the loss from this exit, it could be very significant and material to our first quarter results despite the positive trends announced in our trade balance earlier this month.” , so Credit Suisse said.

The bank added that it would provide another update on the matter “in due course”.

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