Credit Suisse has agreed to pay $495 million (CHF496 million) to resolve a complaint launched against it in the United States, the most recent payment tied to past missteps that have harmed the Swiss bank’s image. Check the news Credit Suisse pays $495 million for legacy case on Switzerland based Lifestyle Magazine- Kenleaks Magazine.
Credit Suisse stated that the payment will be made to address accusations brought by the New Jersey Attorney General concerning the bank’s residential mortgage-backed securities (RMBS) business prior to 2008.
According to the attorney general’s office, Credit Suisse “misled investors and participated in fraud or deception in connection with the offer and sale of RMBS.”
“Credit Suisse is pleased to have reached an agreement that allows the bank to resolve the only remaining RMBS matter involving claims by a regulator and the largest of its remaining exposures on its legacy RMBS docket,” the bank said in a statement.
“The settlement, for which Credit Suisse is fully provisioned, marks another important step in the bank’s efforts to pro-actively resolve litigation and legacy issues.”
The struggling Swiss bank was reported last month to be intending to lay off roughly 10% of its personnel as part of a massive cost-cutting push.
The magnitude of the prospective employment cutbacks was precipitated by a series of scandals and growing legal expenditures. In Switzerland’s first criminal prosecution of a large bank, Credit Suisse was convicted in June of failing to prevent money laundering by a Bulgarian cocaine trafficking ring. The judgement is being appealed by the bank.
The bank is also currently grappling with the fallout from the failed Archegos hedge fund and Greensill financial firm.
This is not the first scandal of the Credit Suisse of the latest time. Previously Russian oligarch had conflict and sued Credit Suisse for big amount of the money.
Check the news Credit Suisse pays $495 million for legacy case on Switzerland based Lifestyle Magazine- Kenleaks Magazine.