Credit Suisse Charged by New York State Department

Credit Suisse Charged by New York State Department

NY regulators have slapped Swiss bank Credit Suisse with a $135m (£103m) fine after finding it engaged in misconduct in its foreign exchange trading business.

"From at least 2008 to 2015, Credit Suisse consistently engaged in improper, unsafe, and unsound conduct, in violation of NY laws and regulations, by failing to implement effective controls over its FX business", the regulator said.

Credit Suisse said it was "pleased to have reached a settlement with the DFS that allows the bank to put this matter behind it", and said it did not admit to any findings.

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Apparently, Credit Suisse utilized a range of measures that included chatroom cartels, anti-competitive business practices and software created to automatically swindle the Swiss banks own customers, the "New York Post" wrote in an article on Tuesday.

Meanwhile, 3.5 billion people - 70% of all the world's adults - own less than $10, 000.

The regulator alleges that Credit Suisse foreign-exchange traders would use chat rooms with traders from multiple banks to share confidential customer information, discuss coordinating trading activity and attempt to manipulate currency prices and benchmark rates.

The state said Credit Suisse predicted that the algorithm would generate about $2 million in profits in 2013. In late September, the British bank HSBC agreed to pay $175 million to avoid prosecution.

In a statement, DFS Superintendent Maria Vullo blamed Credit Suisse's conduct on executives who "deliberately fostered a corrupt culture that failed to implement effective controls".

Elsewhere, traders in the bank used a tactic called "building ammo", where they improperly shared customer information on trading the euro/yen currency pair to ensure they were not taking positions that would hurt one another.

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