Credit Suisse Reaches Agreement with the UK’s Financial Services Authority
Credit Suisse confirms today that it has agreed a settlement with the United Kingdom’s Financial Services Authority (UK FSA), in relation to the mis-pricing of certain asset backed securities, under which it will pay a fine of GBP 5.6 million. Credit Suisse previously announced this mis-pricing on February 19, 2008 and the results of its internal review and remediation program on March 20, 2008.
As the UK FSA acknowledged in its statement today, Credit Suisse detected the mis-pricing and identified the need to revalue its positions; ensured prompt disclosure to the market; commissioned an expedited and detailed review of the causes of the mis-pricing and accepted its findings; disciplined certain individuals; and committed to a comprehensive remedial program. Finally, the UK FSA noted that Credit Suisse promptly informed them of the issue and fully cooperated with them throughout. As a result, the Bank has been able to reach an early settlement of this matter.
Brady W. Dougan, Chief Executive Officer of Credit Suisse Group, said: “This incident was unacceptable to me and the Executive Board. It does not represent the high ethical standards of Credit Suisse. Our overall control framework remains sound and we have taken actions to implement a remediation program to address the findings of our internal review. We are pleased to settle with the UK FSA, so we can now move forward.”
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