Credit Suisse Sued by Investor for Misrepresenting & Manipulating Products after Exchange-Traded Note Plunged 90%
Credit Suisse had been sued by an investor for misrepresenting & manipulating the financial product that had plunged 90% in a market sell-off. The note, VelocityShares Daily Inverse VIX Short-Term Exchange-Traded Note (ETN) was worth around $1.6 billion before the crash. The swiss bank is alleged to liquidate its holdings to avoid losses.
” Credit Suisse sued for Misrepresenting & Manipulating Products “
The note tracks the CBOE Volatility Index, VIX, which is also known as the fear index. In a statement to Reuters, the product is only intended for sophisticated institutional clients and the bank had publicly available prospectus which had accurately and fully disclosed the risks of the investment in XIV (stock ticker). XIV had booked more than 500% gain for the 2 years ending 1st February 2018. The lawsuit, which seeks class-action status as well as unspecified damages is filed in U.S. District Court in Manhattan.
About Credit Suisse
Founded in 1856, we today have a global reach with operations in over 50 countries and 48,200 employees from over 150 different nations. Our broad footprint helps us to generate a geographically balanced stream of revenues and net new assets and allows us to capture growth opportunities around the world. We serve our clients through three regionally focused divisions: Swiss Universal Bank, International Wealth Management and Asia Pacific. These regional businesses are supported by two other divisions specializing in investment banking capabilities: Global Markets and Investment Banking & Capital Markets. The Strategic Resolution Unit consolidates the remaining portfolios from the former non-strategic units plus additional businesses and positions that do not fit with our strategic direction. Our business divisions cooperate closely to provide holistic financial solutions, including innovative products and specially tailored advice.
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