Credit Suisse Takes $702 Million 4th Qtr Charge for Money Fund Damage. In what is by far the worst damage to a money market fund advisor from the liquidity crisis of 2007, Credit Suisse took a $702 million charge in its latest quarter over valuation losses in its "money market fund repositioning". (See the earnings release here). Credit Suisse purchased $8.43 billion of SIVs and ABS from its Credit Suisse Prime Inst MMF and "offshore" money funds and took paper losses of $835 million in total in 2007. "Positions are marked-to-market, and carry typical discounts to par of 15% to 20%," said the company's earnings presentation. The company, "Responded to highly stressed market conditions affecting money market funds" and the "actions [were] taken to maintain liquidity and to protect [the] client franchise," said the slides. The CS "Money market funds are now operating normally" with "no material exposure to SIVs, CDOs or US subprime", the company added. Crane Data expects the majority of money funds' paper losses to be recouped as troubled SIVs and ABS eventually sell off assets and pay creditors.

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