U.S. jury finds Credit Suisse did not rig forex market

Oct 20 (Reuters) – A US jury found on Thursday that Credit Suisse Group AG (CSGN.S) did not conspire with the world’s largest banks to manipulate prices in the foreign exchange market between 2007 and 2013, and the bank did not agree with it Victory is working on a restructuring and puts a series of scandals behind it.

The case stems from the forex manipulation scandal that led to international regulatory investigations that resulted in more than $10 billion in fines for several banks.

Credit Suisse was the last defendant bank remaining in the 2013 class action lawsuit brought by foreign exchange investors after 15 others settled for $2.31 billion. Investors allege that Credit Suisse traders shared non-public pricing information with traders from other banks.

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During the trial in Manhattan federal court, which began Oct. 11, jurors heard testimony that five banks pled guilty to involvement in antitrust conspiracies related to foreign exchange in 2015 and saw transcripts from chat rooms with names like “The Cartel” in which investors say traders colluded.

A lawyer for the investors argued during the trial that chat transcripts were damning evidence of a single conspiracy between the banks to manipulate the forex market. Credit Suisse traders participated in more than 100 chat rooms, sharing information about the spread between the buy and sell price of currencies every other day, he said.

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Lawyers for Credit Suisse argued that such infrequent communications could not affect the market, that traders chatting about different currency pairs could not be part of the same conspiracy, and that there was no evidence that Credit Suisse traders ever traded in the chats had.

Credit Suisse settled in July with some investors, including Allianz SE’s BlackRock Inc and Pimco, who have decided to opt out of the class action lawsuit. Investors typically do this when they hope to get more back by suing themselves. The terms of the settlement were not disclosed.

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The ruling came as the Swiss bank worked to complete an overhaul that would likely see a volatile investment bank in London and New York being scaled back to focus on banking for the wealthy in Switzerland.

The case is In Re Foreign Exchange Benchmark Rates Antitrust Litigation, US District Court, Southern District of New York, No. 13-07789.

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Reporting by Jody Godoy; Editing by Andrea Ricci

Our standards: The Thomson Reuters Trust Principles.

Jody Godoy

Thomson Reuters

Jody Godoy reports on banking and securities law. Reach her at [email protected]


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