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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Credit Suisse to Pay $47 Million to US Authorities for Hiring Practices in Asia-Pacific

Credit Suisse to Pay $47 Million to US Authorities for Hiring Practices in Asia-Pacific

Credit Suisse (Hong Kong) has agreed to pay US authorities $47 million to resolve investigations of the Swiss bank hiring practices in Asia-Pacific.

” Credit Suisse to Pay $47 Million to US Authorities for Hiring Practices in Asia-Pacific “

The United States Department of Justice (DoJ) were investigating if Credit Suisse (Hong Kong) had hired relatives of government officials or powerful executives in Asia to increase chances of getting businesses & deals between 2007 to 2013.  These hiring practices would have infringed the U.S. Foreign Corrupt Practices Act.

The $47 million settlement to the United States Department of Justice (DoJ) is a non-prosecution agreement to resolve the case, and no criminal charges have been brought against the bank.  Other banks have also made settlements with U.S. authorities including JP Morgan paying more than $260 million in 2017.

Source: Credit Suisse, Reuters, Bloomberg

 

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Credit Suisse Sued by Investor for Misrepresenting & Manipulating Products after Exchange-Traded Note Plunged 90%

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.

Sources: Reuters, Bloomberg

 

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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.

Visit: Credit Suisse

 


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Credit Suisse Investigated in United States for Asian Hiring Practices

Credit Suisse Investigated in United States for Asian Hiring Practices

Credit Suisse is under investigation by the Department of Justice and the US Securities and Exchange Commission (SEC) in the United States for hiring children and relatives of influential Chinese policymakers.  The bank is being investigated if they had hired referrals from government agencies or state owned entities in exchange for investment banking business, which is violation of the US Foreign Corrupt Practices Act and related civil statutes.

“ Credit Suisse investigated for hiring children & relatives of influential Chinese policymakers “

The investigation was disclosed in Credit Suisse 2017 results announcement.  In 2016, JP Morgan Chase had agreed to pay US$264 million to the US government to settle allegations that it had hire relatives (sons & daughters) of officials and to increase their chance of gaining businesses.  In 2017, HSBC also disclosed that it was being investigated by SEC in its result announcement.

Sources: SCMP, Reuters, SEC

 

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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.

Visit: Credit Suisse

 


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Former Credit Suisse Private Banker Sentenced to 5 Years Jail Term for Fraud in Switzerland

 

Former Credit Suisse Private Banker Sentenced to 5 Years Jail Term for Fraud in Switzerland

Former Credit Suisse Private Banker Patrice Lescaudron had been sentenced to 5 years jail term for serious fraud and forgery in his handling of former clients 8 years by a Geneva court in Switzerland.  Patrice had put in placed a fraudulent scheme that to earn himself tens of millions of swiss francs and causing losses totalling CHF 143 million ($152 million) between 2005 to 2015.  His clients who had suffered losses includes former Georgia Prime Minister Bidzina Ivanishvili (2012-2013) and Russian Billionaire businessman and former Senator Vitaly Malkin.

” Former Credit Suisse Private Banker Jailed for 5 Years, to Repay CHF 130 million “

Patrice was “considered as a star” on the bank’s Russia desk in Credit Suisse.  He had “copy-pasted signatures on documents to falsify transfer orders  falsified trades and hidden mounting losses.  He accumulated a personal net fortune estimated at CHF 32 million, including houses in Switzerland and the Italian seaside resort of Porto Cervo, a missing Picasso lithograph, a Rolex watch and jewels.

Lawyers representing former Georgia Prime Minister Bidzina Ivanishvili said that the fraudulent activities had caused hundreds of millions of dollars losses and Credit Suisse banker Patrice there should be other Credit Suisse accomplice.  After 2 years of investigation, there was no indication that the fraud was assisted by other Credit Suisse employees and senior management.

Patrice receive a 5 years jail sentence, house in Porto Cervo was seized and to make repayments totalling more than CHF 130 million.  He is allowed to keep his family home in Arzier, and was not barred from future work in banking n Switzerland.  He has already spent spent two years in pre-trial detention and may be able to to get out of jail on parole around April 2019.

Sources: Reuters, Bloomberg

 

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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.

Visit: Credit Suisse

 


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Credit Suisse Fined $5 Million for Multiple Breaches in Hong Kong

Credit Suisse Fined $5 Million for Multiple Breaches in Hong Kong

Credit Suisse had been fined $5 million (HKD 39.3 million) for numerous breaches including not separating clients’ assets and the bank’s assets, failed internal controls in multiple areas and mismatching product recommendations to clients.

“ Credit Suisse fined $5 Million and to Compensate Client of almost $1 Million “

The fine of around $5 million was determined after Hong Kong’s Securities and Futures Commission (SFC) took into account Credit Suisse co-operation in the investigation, implementing internal controls and to fully compensate clients of around $7.6 million (US$970K).  The breaches had occurred over between 2010 to 2017.

Source: Securities and Futures Commission

 

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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.

Visit: Credit Suisse

 


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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Credit Suisse to Pay Fine of $135 million for FX Trading Misconduct

Credit Suisse to Pay Fine of $135 million for FX Trading Misconduct

Credit Suisse has agreed to pay a settlement of $135 million for its foreign exchange misconduct after investigations by the Department of Financial Services of New York State (DFS).  The U.S. authority had investigated its FX trading practices between 2008 to 2015, including trading ahead of clients (“front running”) or manipulating exchange rates.   The DFS concluded the bank brokers had misled clients and manipulated exchange rate values.

“Credit Suisse Agreed to Pay Fine of $135 million Forex Trading Misconduct”

The $135 million settlement was agreed between Credit Suisse and the Department of Financial Services of New York State (DFS).

Source: Reuters, Bloomberg

 

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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.

Visit: Credit Suisse

 


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Credit Suisse at the Centre of an International Tax Evasion Investigation

Credit Suisse at the Centre of an International Tax Evasion Investigation

Some of the employees and account holders in Credit Suisse Group are subjects of a tax evasion and money laundering probe that spans across five countries.  Offices in London, Paris and Amsterdam have been visited by local authorities concerning “client tax matters”. The investigation will focus on “senior employees” and a number of customers.

“Offices in London, Paris and Amsterdam have been visited by local authorities concerning client tax matters.”

~ Bloomberg

The investigation into 55,000 suspect bank accounts  has involved the seizure of assets including a gold bar, paintings and jewellery and is part of co-ordinated action by authorities in Britain, the Netherlands, Germany, France and Australia.

Related Reports: Bloomberg, The Guardian

 

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.

Visit: Credit Suisse

 


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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HSBC Sells US Mortgages to Credit Suisse

HSBC Sells US Mortgages to Credit Suisse

HSBC has agreed to sell mortgages worth $1.6 billion to DLJ Mortgage Capital, a subsidiary of Credit Suisse. The loans are part of HSBC’s U.S Consumer and Mortgage lending portfolio. HSBC will receive $1.495 billion as part of the deal which will used to clear some of the debt.

“HSBC has agreed to sell mortgages worth $1.6 billion to DLJ Mortgage Capital, a subsidiary of Credit Suisse.”

~ Forbes

This sale will now bring the total outstanding loans for the U.S CML unit to below $5.7 billion. In the late 2008, the outstanding loans for the US unit was at a peak of $62 billion.  HSBC used to have a huge presence in the US mortgage industry prior to the economic downturn of 2008.

Related Reports: Forbes, Reuters

About HSBC

HSBC is one of the world’s largest banking and financial services organisations. With around 6,000 offices in both established and emerging markets, we aim to be where the growth is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and, ultimately, helping people to fulfil their hopes and realise their ambitions.

We serve more than 47 million customers through our four Global Businesses: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Global Private Banking. Our network covers 71 countries and territories in Europe, Asia, the Middle East and Africa, North America and Latin America. Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by about 213,000 shareholders in 132 countries and territories.

Visit: HSBC

 


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Retired Business Professor Pleaded Guilty to Hiding $200 Million from IRS

Retired Business Professor Pleaded Guilty to Hiding $200 Million from IRS

A former client of Credit Suisse has pleaded guilty to hiding $200 million from US tax authorities. Dan Horsky, a retired business professor pleaded guilty to using Swiss bank accounts to hide assets and income from tax authorities.

“His lawyers however have said that he deserves probation because he has helped with a criminal investigation of the bank and will pay at least $124 million in penalties.”

~ Bloomberg

Prosecutors have urged a judge to send him to prison for 20 months. His lawyers however have said that he deserves probation because he has helped with a criminal investigation of the bank and will pay at least $124 million in penalties.

Related Reports: Bloomberg

 


The Wealth Insider is the world’s leading wealth intelligence for global wealth managers, investments managers, asset managers, high net-worth service providers and wealthy individuals.  Our global workforce seamlessly present the inside news of the most relevant news, insights, global wealth trends, innovation & digital transformation to our global audience.

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