Swiss banking major Credit Suisse Group AG will have to shell out about $475mn to resolve an international legal saga that has been going on for many years now related to the Mozambique scandal. As per prosecutors, the bank deceived investors by hiding information related to the use of proceeds of three debt sales in 2013-2016. CS bankers received $50mn in kickbacks that were not disclosed to other members of management, part of at least $200mn in improper payments and bribes. The settlement includes:
- $247.5mn of criminal fines paid to the US Justice Department, which will be reduced to $175.5mn after crediting payments to other authorities
- $100mn to the US SEC
- Forgiveness of $200mn of debts owed by Mozambique
- Appointing an independent third-party to review compliance measures for businesses in financially weak & high-risk countries, as per enforcement actions by Switzerland’s FMSA
£147.2mn ($200.6mn) to UK’s FCA
This settlement comes after CS had to freeze $10bn in supply chain funds linked to Greensill Capital and a $5.5bn hit from the collapse of Archegos Capital, reported Bloomberg.
CS’s 5.1% Perps traded steady at 102.17 yielding 4.78%.
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