US to reassure banks as C Suisse prepares to enter guilty plea

NYSE Wall Street

With Credit Suisse poised to become the first bank in more than a decade to admit to a crime in the U.S., regulators have been reaching out to some of the firm’s biggest business partners to avert a panic, according to a person briefed on those communications.

Bloomberg News reports that the bank reached a deal to plead guilty as early as today to resolve claims it helped Americans evade taxes and will pay about $2.5bn to the Justice Department and regulators, said a person familiar with the matter, requesting anonymity because the details aren’t public.

Chief Executive Officer Brady Dougan and Chairman Urs Rohner may step down, SonntagsZeitung reported May 17, without saying how it got the information.

The bank will be allowed to continue operating in the U.S., two people familiar with the matter said. In their outreach ahead of the expected guilty plea, regulators reassured some of the largest U.S. financial firms that the current situation wouldn’t become a repeat of the crisis that followed the 2008 collapse of Lehman Brothers, the person briefed on the conversations said.

To access the complete Bloomberg article hit the link below:

Credit Suisse Plea Looms as U.S. Said to Reassure Banks 

Wall of Worry Rebuilt as Nasdaq Rout Sends Cash to Two-Year High

 

Best place to workThe Best Firm of the Last Decade is...

Register for Financial Markets News Alerts