Credit Suisse Charged by New York State Department

Lloyd Doyle
November 14, 2017

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.

The agreement with the Department of Financial Services (DFS) settles claims relating to Credit Suisse's voice and electronic FX trading business between 2008 and 2015, according to a press release sent on Tuesday night.

From April 2010 to June 2013, Credit Suisse also allegedly used an algorithm created to trade ahead of clients' orders before they were able to go through.

The agreement is the latest in a string of global regulatory settlements with big Wall Street banks over forex trading practices.

NY regulators have accused more than a dozen traders and salespeople working for the Switzerland's second-biggest bank of manipulating the $5.3 trillion a day forex market and other illegal activity over the course of eight years, running up to 2015.


Multiple banks have been fined since the financial crisis for manipulating foreign exchange trading, including HSBC, Citigroup, JP Morgan and RBS.

The state said Credit Suisse predicted that the algorithm would generate about $2 million in profits in 2013.

The department's superintendent Maria Vullo said certain bank executives "deliberately fostered a corrupt culture" which permitted repeated violations of the law and of client trust.

As part of its settlement, Credit Suisse agreed to improve its controls and compliance, and retain a consultant to review its remedial efforts for at least a year.

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.

Other reports by Iphone Fresh

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