NexusFi: Find Your Edge


Home Menu

 





U.S. to charge ex-Suisse traders on subprimes


Discussion in Traders Hideout

Updated
    1. trending_up 761 views
    2. thumb_up 0 thanks given
    3. group 0 followers
    1. forum 0 posts
    2. attach_file 0 attachments




 
Search this Thread

U.S. to charge ex-Suisse traders on subprimes

  #1 (permalink)
 
kbit's Avatar
 kbit 
Aurora, Il USA
 
Experience: Advanced
Platform: TradeStation
Trading: futures
Posts: 5,854 since Nov 2010
Thanks Given: 3,295
Thanks Received: 3,364

(Reuters) - U.S. authorities are preparing to charge four former Credit Suisse Group AG employees with criminal and civil fraud related to write-downs on subprime mortgage derivatives at the height of the financial crisis, sources familiar with the matter said.

Credit Suisse will not be charged in the matter, which is being investigated by federal prosecutors and the U.S. Securities and Exchange Commission, the sources said.

The four people to be charged were former Credit Suisse traders who were fired, another source said, but it was unclear when and for what reason. The suspected illegal conduct took place roughly four years ago, the source said, adding that the bank had been cooperating with officials.

The investigation stems from $2.85 billion in write-downs that Credit Suisse took on collateralized debt obligations in 2008, said the sources, who spoke on the condition of anonymity.

Credit Suisse revealed those CDO losses in early 2008, and blamed them on a group of rogue traders - who the bank said had deliberately mispriced securities - and on a failure of internal controls.

Credit Suisse, the Federal Bureau of Investigation, the SEC and Manhattan U.S. attorney Preet Bharara declined to comment on the matter.

Charges could come as early as Wednesday, people familiar with the matter said, but the timing was uncertain.
The planned charges come as the Obama administration is stepping up efforts to prosecutes Wall Street bankers and others for misconduct related to the financial crisis. Last week during his State of the Union address, President Obama announced the formation of a mortgage-fraud task force to pursue subprime-related cases.

The collapse of the subprime housing market was one of the triggers of the worst financial crisis since the Great Depression.


U.S. to charge ex-Suisse traders on subprimes: sources | Reuters

Started this thread Reply With Quote




Last Updated on January 31, 2012


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts