Credit Suisse stock up after settlement

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CreditSuisse

Reuters.

The sun is reflected at the logo of Swiss bank Credit Suisse at a branch office in Basel.

Zurich - Shares in Credit Suisse climbed Tuesday, a day after the Swiss banking giant was fined $2.6 billion by US authorities after pleading guilty to helping Americans avoid taxes.

Shortly before 10:00 am (10:00 SA time), Credit Suisse shares had gained 2.84 percent to reach 26.81 Swiss francs on the Swiss stock exchange's SMI index.

Overall, the SMI was up by 0.41 percent.

Analysts said that the fact that Credit Suisse had drawn a line under its legal problems outweighed the importance of paying what is the heaviest fine ever levied in a US tax case.

US authorities said the “brazen” Swiss bank, one of the world's biggest wealth managers, helped thousands of rich people hide money in accounts under false names and in fake foundations for decades.

In a negotiated deal costing the equivalent of 1.9 billion euros or 2.33 billion Swiss francs, Credit Suisse admitted guilt on one felony criminal charge of conspiracy to aid tax evasion.

As part of the deal it can continue operating in the United States without fear of losing its license.

Aware that it faced a huge legal penalty, Credit Suisse had already set aside some funds to cover eventual costs.

Taking those into account, Credit Suisse will book an additional after-tax charge of 1.59 billion Swiss francs in its second quarter accounts. - Sapa-AFP


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