Credit Suisse confirms today that it has agreed a settlement with the United Kingdom's Financial Services Authority (FSA).
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Agreement has been reached between Credit Suisse (NYSE:CS) and the FSA over mis-pricing of securities which came to light in February 2008.The Swiss based bank was fingered for mis-pricing of certain asset backed securities and as a result will pay a fine of GBP 5.6 million.
The FSA acknowledged in a statement today that Credit Suisse had detected the mis-pricing and identified the need to revalue its positions.
A prompt response and disclosure to the market helped Credit Suisse in minimising any more damage.
The bank also commissioned an expedited and detailed review of the causes of the mis-pricing and accepted its findings; disciplined certain individuals; and committed to a comprehensive remedial program.
The FSA noted that Credit Suisse promptly informed them of the issue and fully cooperated with them throughout.
As a result, the Bank has been able to reach an early settlement of this matter.
Brady W. Dougan, Chief Executive Officer of Credit Suisse Group, said: "This incident was unacceptable to me and the Executive Board. It does not represent the high ethical standards of Credit Suisse. Our overall control framework remains sound and we have taken actions to implement a remediation program to address the findings of our internal review. We are pleased to settle with the UK FSA, so we can now move forward."