Credit Suisse Group Inc faces a potential $2 billion of
exposure over fraud that occurred a decade ago at National Century Financial
Enterprises, a result of a federal judge's determination on how to apportion
responsibility.
Friday's decision by U.S. District Judge James Graham could
expose the Swiss bank to hundreds of millions of dollars of added liability
over the activities of Lance Poulsen, who co-founded National Century in 1990
and was its chief executive. He is now serving a 30-year prison term and is
presumed insolvent.
The decision is also a victory for bondholders including the
state of Arizona, AllianceBernstein Holding LP, Lloyds TSB Bank Plc, MetLife
Inc, Allianz SE's Pimco unit that accused Credit Suisse of deceiving it about
the company and missing its estimated $2.9 billion fraud.
More? Check out http://www.cnbc.com/id/100411173
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