If you’re going to team up with other banks to manipulate interest rates and engage in other shady behavior, just make sure to be the first one to go to regulators and let them know what you’ve all been up to. Read more »
Royal Bank Of Scotland’s Involvement In Rate Rigging Cartel Sends Powerful Message To Would-Be CopycatsBy Bess Levin
1. Is it standard practice at Credit Suisse to tell traders at other banks, “Hey, we might buy this stock”? Because Zoe Henderson has worked in a lot of offices and people do that all the time.
Credit Suisse has accused the trader, Zoe Henderson, of improperly sharing client communications with her husband, a London-based trader at a rival bank, via electronic chat rooms, the people said…At Credit Suisse, the examination of chat-room records revealed that Ms. Henderson, who has been at the bank since 2004, on multiple occasions during the past several years shared Credit Suisse communications with her husband, Toby Henderson, a London-based equities trader at Royal Bank of Canada, according to the people familiar with the probe. Some of the communications described Credit Suisse clients’ interest in buying or selling stocks, price ranges of upcoming public offerings, or updates on corporate mergers or other deals, the people said…Ms. Henderson has told Credit Suisse lawyers that it was normal practice for traders other than her to send messages indicating interest in certain stocks to traders at rival banks, and that the practice didn’t hurt clients, according to a person familiar with the probe.
2. Why were Credit Suisse traders (allegedly!) making viewings of adult videos a group activity?
2a. …in the office? Read more »
Earlier this week, Credit Suisse pleaded guilty to engaging in massive tax fraud and paid the U.S. government $2.6 billion as part of its settlement agreement. While these things are never something a corporation hopes for, the good news actually abounds:
1. The restitution charge is not really that high in the grand scheme of things
2. Neither clients nor counterparties can be bothered to care
3. CEO Brady Dougan (and Chairman Urs Rohner) get to keep their jobs
And although it was surely welcome news to hear he didn’t have to box up his things and leave, Brady Dougan’s employment status comes with an asterisk. Although the board “has backed the American chief executive,” the people of Switzerland have not. Indeed, the only reason they’re banging down his office door right now is that, truth be told, they like his style. Read more »
Credit Suisse CEO Thrilled To Hear Client Response To “We’ve Pleaded Guilty To Extensive Tax Fraud” Is “Yeah, And?”By Bess Levin
As you may have heard, yesterday Credit Suisse paid a $2.6 billion fine and pleaded guilty to doing the thing that Swiss banks were put on this earth to do– helping American clients avoid paying taxes by hiding their assets from the IRS. Now, some people might worry that copping to engaging in years of highly illegal activity would cause clients and counterparties to look at the bank differently. In fact, CEO Brady Dougan was one of those people, which caused him to get on the horn and conduct a small poll to see if anyone would have trouble doing business with Credit Suisse moving forward. The great news is that apparently no one gives a shit. Read more »
In related news, the bank is about to plead guilty to helping a whole lot of people avoid paying taxes and fork over $2.5 billion1 to the U.S. government. So, it’s a big day for the Swiss. Read more »