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- Credit Suisse (NYSE:CS) agrees to pay almost $475M to U.S. and U.K. authorities, including almost $100M to the Securities and Exchange Commission for "fraudulently misleading" investors in raising funds on behalf of state-owned entities in Mozambique, the SEC said.
- Credit Suisse (CS) shares fall 1.5% in U.S. premarket trading.
- According to the SEC's order, two bond offerings and a syndicated loan were used to conduct a hidden debt scheme, pay kickbacks to now-indicted former Credit Suisse (CS) investment bankers along with their intermediaries, and bribe corrupt Mozambique government officials.
- The order finds that the offering materials, created and distributed by Credit Suisse (CS), contained false information that the proceeds would help develop the country's tuna fishing industry. It also failed to disclose the amount and nature of Mozambique's debt and its risk of default arising from the transactions.
- Credit Suisse (CS) agrees to pay disgorgement and interest totaling more than $34M and a penalty of $65M to the SEC. The U.S. Department of Justice imposed a $247M criminal fine, with Credit Suisse (CS) paying, after crediting, $175M. The bank will also pay more than $200M in a penalty as part of a settled action with the U.K.'s Financial Conduct Authority.
- A London-based subsidiary of Russian bank VTB separately agreed to pay more than $2.4M in disgorgement and interest along with a $4M penalty for it role in misleading investors in the 2016 bond offering.
- Previously (Oct. 19), Credit Suisse unit to plead guilty over Mozambique debt deal scandal.