Credit Suisse near $536m settlement
WASHINGTON - Credit Suisse AG may pay $536 million to settle claims that the Zurich-based bank helped process payments that permitted Iran and other nations facing government sanctions gain access to US financial markets.
The bank is in “advanced settlement discussions’’ with US authorities, including the Justice Department and the Federal Reserve, Credit Suisse said yesterday in a statement. The company said in January that it was cooperating with federal agencies and Manhattan District Attorney Robert Morgenthau.
“This will be the biggest settlement ever coming to New York,’’ said Morgenthau, who previously announced a $350 million settlement with Lloyds TSB Bank PLC. “If you violate US sanctions, you’re going to pay a big financial penalty.’’
Lloyds, Credit Suisse, and eight other major foreign banks have been investigated for using the same technique to disguise illegal money transfers, according to the Lloyds settlement. The discussions with the Swiss bank relate to a previously disclosed investigation of dollar payments from 2002 through April 2007, Credit Suisse said.
Credit Suisse set aside funds for a settlement through the end of the third quarter this year and expects to record an additional charge of $346 million in the fourth quarter.
