Credit Suisse Agrees to Pay $234m Settlement in France

Credit Suisse (NYSE:CS), a Swiss banking giant, agreed to pay $234 million to settle a money laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term and tax fraud case, the French court informed on Monday. According to the official press release, the settlement finishes a claim against a Swiss bank conducted in France that allegedly helped its clients avoid taxing at least part of their wealth.

Prosecutors stated that the alleged scheme took place between 2005 and 2012. Its reach was not limited to France but also covered other countries, and Credit Suisse's actions may have cost the French state over €100 million.

"The settlement provides for a public interest fine comprising a profit disgorgement of EUR 65.6 million and the payment of an additional amount of EUR 57.4 million. Further Credit Suisse will pay EUR 115 million to the French state as damages," Credit Suisse revealed in a press statement.

For Credit Suisse, it is not the first settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term in recent months. The new Legal Chief, Markus Diethelm, hired in July, seems to take a more proactive approach to solve the company's legal and judicial problems than its predecessors.

Credit Suisse Problems in the United States

One of the world's leading financial service providers reached another settlement in October related to the mortgage-backed securities (MBS) business. The institution is obliged to pay $495 million to fully resolve claims regarding its "Residential Mortgage Backed Securities (RBMS)" activities.

In addition, the bank is still waiting for a verdict in the case conducted by the US Justice Department. The prosecutors are trying to determine Credit Suisse's role in helping American consumers hide their wealth. The case returns eight years after the Swiss bank paid a substantial settlement for tax evasion worth $2.6 trillion.

Current problems and historical scandals are reflected in the company's market value. Year-to-date (YTD), Credit Suisse's stock price fell 51%, currently standing at $4.72. Although they rebounded 27% from October and all-time low, they are still historically underpriced.