Former Credit Suisse employees will be charged with intentionally mismarking the prices of collateralized debt obligations and other securities, a person familiar with the matter told the NY Post. The US Securities and Exchange Commission was also involved in the probe, said the person, who didn’t want to be named because the investigation isn’t public. Less than five people will be charged and Credit Suisse isn’t being prosecuted, the person said.
Jerika Richardson, a spokeswoman for Manhattan US Attorney Preet Bharara, declined to comment on whether any charges would be filed. John Nester, an SEC spokesman, and Victoria Harmon, a Credit Suisse spokeswoman, also declined to comment.
On Feb. 19, 2008, Switzerland’s second-largest bank made a surprise announcement that it would take writedowns on asset- backed securities after finding “mismarkings” by a group of traders. The bank said a month later it would write down $2.65 billion after an internal review found the pricing errors on residential mortgage-backed bonds and CDOs were made intentionally “by a small number” of traders who were then fired or suspended.
At the time the pricing errors were found, the Swiss bank hadn’t disclosed the names of the traders responsible...
Read more: http://www.nypost.com/p/news/business/report_wall_st_to_be_cuffed_q7ouAe0U2NozCRLdkgDnyI
No comments:
Post a Comment