Credit Suisse today offered cash compensation to about 1,700 of its wealthy customers who invested in financial products sold by Lehman Brothers, the former Wall Street banking titan that collapsed last year.
From the Times:
Credit Suisse today offered cash compensation to about 1,700 of its wealthy customers who invested in financial products sold by Lehman Brothers, the former Wall Street banking titan that collapsed last year.
In what is likely to be seen as a landmark deal, Switzerland’s second-largest bank offered to pay about SwFr50 million (£29.5 million) in cash to customers that bought “capital-protected” products sold by Lehman Brothers.
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The bank collapsed into Chapter 11 bankruptcy protection in the US and filed for administration in the UK and continental Europe in September, triggering a worldwide crisis in banking.
Thousands of customers who were sold Lehman products by international fund managers and investment banks saw the value of their holdings wiped out.
Today’s proposal means that Credit Suisse has offered a total of approximately SwFr150 million to roughly 3,700 of its customers who bought Lehman Brothers products, after a separate deal was agreed in the days following the collapse.
To read the full story, visit timesonline.co.uk
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