Other Services - Latest News 21 November 2008

Mis-pricing results in £5.6 million fine for bank- 14/08/2008[top]

The UK arm of a Swiss investment bank has been fined £5.6 million by the Financial Service Authority (FSA) after mis-pricing by traders.

Following the announcement of full-year results in February, Credit Suisse revealed that it was re-pricing a number of asset-backed securities due to the trader errors. However, this resulted in a £1.4 billion writedown.

FSA director of enforcement, Margaret Cole, commented on the bank's fines for 'failing to conduct their business with due skill, car and diligence and failing to organise and control their business effectively'.

"It is imperative, particularly in more challenging financial conditions, that firms have in place appropriate systems and controls to manage their risks," she said.

"The sudden and unexpected announcement of the writedown had the potential to undermine market confidence."

Credit Suisse's fine is the fourth largest that the FSA has ever handed out, with only Shell, Citigroup and Deutsche Bank receiving bigger penalties from the financial regulator.

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