Credit Suisse has agreed a settlement with the United Kingdom’s Financial Services Authority (UK FSA), in relation to the mis-pricing of certain asset backed securities, under which it will pay a fine of 5.6 million.
Credit Suisse previously announced this mis-pricing on 19 February, 2008 and the results of its internal review and remediation program on 20 March, 2008.
“Credit Suisse detected the mis-pricing and identified the need to revalue its positions; ensured prompt disclosure to the market; 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,” says UK FSA in its statement. “Credit Suisse promptly informed us of the issue and fully cooperated with us throughout. As a result, the Bank has been able to reach an early settlement of this matter.”
“This incident was unacceptable to me and the Executive Board,” says Brady W. Dougan, Chief Executive Officer of Credit Suisse Group. “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.”