Credit Suisse to Pay $135 Million to Settle Allegations of Improper Foreign-Exchange Activity
November 13 2017 - 5:20PM
Dow Jones News
By Austen Hufford
Credit Suisse Group AG will pay a $135 million fine to settle
allegations it broke New York banking law by improperly working
with other global banks, trading ahead of client orders and
additional conduct that hurt its customers.
In a statement, Credit Suisse said Monday it was pleased to have
reached the settlement, though it didn't admit or deny the
allegations. The company said it would record a pretax charge
related to the settlement in its fiscal fourth quarter.
The New York Department of Financial Services alleges that
Credit Suisse failed to implement proper controls over its
foreign-exchange business from 2008 to 2015.
The regulator alleges that Credit Suisse foreign-exchange
traders would use chat rooms with traders from multiple banks to
share confidential customer information, discuss coordinating
trading activity and attempt to manipulate currency prices and
benchmark rates.
The New York financial regulator said these chat rooms allowed
the banks and traders to reap higher profits from trades at the
expense of customers.
From April 2010 to June 2013, Credit Suisse also allegedly used
an algorithm designed to trade ahead of clients' orders before they
were able to go through. The state said Credit Suisse predicted
that the algorithm would generate about $2 million in profits in
2013.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
November 13, 2017 17:05 ET (22:05 GMT)
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