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Credit Suisse to Pay $76 Million to US Authorities for Hiring Practices in Asia-Pacific

Credit Suisse to Pay $76 Million to US Authorities for Hiring Practices in Asia-Pacific

Credit Suisse (Hong Kong) has agreed to pay United States authorities $76 million to resolve investigations of the Swiss bank hiring practices in Asia-Pacific.  The United States Department of Justice (DoJ) have announced that Credit Suisse had engaged in a corrupt scheme by by hiring friends and family of Chinese government officials to win business with Chinese state-owned entities, generating at least $46 million in profits.

” Credit Suisse to Pay $76 Million to US Authorities for Hiring Practices in Asia-Pacific “

Between 2007 and 2013, several Credit Suisse senior managers in the Asia Pacific (APAC) region had hired and promoted candidates of government officials and executives of clients that were state-owned entities (SOEs) to win business for Credit Suisse.  These ‘relationship hires’ often lacked necessary technical skills, and offered fewer qualifications and significantly less relevant banking experience than other candidates for the jobs.  The hiring of friends and family of Chinese government officials had generated the bank at least $46 million in profits.

The DoJ and Credit Suisse (Hong Kong) have entered into a non-prosecution agreement, with the Swiss bank paying a criminal penalty of $47 million ($76,853,720) to resolve the matter.  In related proceedings, Credit Suisse Group also settled with the U.S. Securities and Exchange Commission (SEC), paying a total of $24,989,843 in disgorgement of profits and $4.8 million ($4,833,961) in prejudgment interest.  The total fine from both United States authorities DoJ and SEC, amounted to $76 million ($76,853,720).

Other banks have also made settlements with U.S. authorities for hiring practices, including JP Morgan paying more than $260 million in 2017.

Source: Credit Suisse, Reuters, Bloomberg

 

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