Bloomberg reports that former Credit Suisse Group AG employee David Higgs surrendered to the FBI after a person familiar with the matter said fewer than five people will be charged in a U.S. prosecution for intentionally mismarking prices of securities including collateralized debt obligations.
On Feb. 19, 2008, Switzerland's second-largest bank announced 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 bank hadn't disclosed the names of the traders.
Higgs surrendered at 8:02 a.m. this morning in Manhattan, according to J. Peter Donald, a spokesman for the Federal Bureau of Investigation. At least one other individual is set to surrender to the FBI and face charges today in New York federal court, a second person familiar with the case said.
Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/02/01/bloomberg_articlesLYPUH66S972A01-LYPYB.DTL
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