Sign up USA
Proactive Investors - Run By Investors For Investors

Credit Suisse pays US$135mln to settle New York investigation in to forex misconduct

Credit Suisse will include the charge in its fourth-quarter results
Credit Suisse
Credit Suisse denies the claims

Credit Suisse Group (NYSE:CS) is to pay US$135mln to settle an investigation by New York regulators into claims of misconduct in its foreign exchange trading business.

The Department of Financial Services (DFS) in New York said traders at Credit Suisse had co-ordinated with other banks and traded on confidential customer information, which could have led to the manipulation of exchange rates.

“From at least 2008 to 2015, Credit Suisse consistently engaged in improper, unsafe, and unsound conduct, in violation of New York laws and regulations, by failing to implement effective controls over its FX business,” the regulator said.

The DFS said Credit Suisse had used software programmed to trade in anticipation of client orders, in a practice called "front-running". Credit Suisse was also accused of sometimes delaying client orders through its foreign exchange trading platform, eFX, in order to boost profits.

Traders engaged in chat rooms to share information with other banks to manipulate prices, DFS said.

Credit Suisse denied the claims, saying that it does “not admit to any findings of factor and the resolution does not involve any fraud-based violations”.  

The bank will include the fine in its fourth quarter results, to be published in February.

“Credit Suisse is pleased to have reached a settlement with the DFS that allows the bank to put this matter behind it,” it said.

It marks the latest settlement to arise from a global probe of foreign exchange markets. HSBC Holdings PLC (LON:HSBA), Citigroup, JP Morgan and Royal Bank of Scotland Group PLC (LON:RBS) have also been fined for manipulating foreign exchange since the financial crisis. 

View full CS. profile View Profile

Credit Suisse Timeline

Related Articles

August 16 2018
Advantage Finance motor division continues to receive more than 80,000 applications for loans a month and customer numbers now stand at a record 58,000.
August 23 2018
PCF has taken on more than 2,400 new customers and retail deposits have increased to £108mln since it started as a fully-operational bank in July 2017.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use