Swiss international bank, Credit Suisse, is set up to respond to a lawsuit filed against it by the bank’s investors in the US for what they termed foreign exchange rigging since a judge in a New York court struck out the bank’s appeal seeking a dismissal of the case brought before the court.
Many Against Many
Many active investors have leveled allegations that the Credit Suisse close traders have disseminated crucial and classified information with traders in some other banks, therefore, creating a rigged currency price in the $6.6 trillion/day foreign exchange market.
The banks involved in this forex rigging operate like a cartel, and they fix foreign exchange prices and then disseminate the information in their various online chat rooms having such names as “Yen Cartel.”
Credit Suisse bank is the last of 16 bank cartels involved in the alleged forex fixing facing the brunt of investigators along with the lawsuit. Starting in 2013, the remaining 15 banks had opted for an early settlement that saw them pay a total of $2.31 billion.
Some of the involved banks, however, were under different probes from regulators, and it all resulted in fines surpassing $10 billion. A lot of traders who took part in the cartel operations were also charged and convicted, while others were still being indicted.
The Court Has the Final Say
Credit Suisse went to court, denying any involvement in any international conspiracy that tried to influence foreign exchange prices at any moment. The court’s ruling in response was that it was too early to conclude on the bank’s innocence.
Furthermore, the judge at the New York court equally turned down the demand of the investors to hold the bank accountable. The judge, Lorna Schofield, was quoted to have said that there are yet questions about the extent and scope of the illegal objective of all the conspirators’ inter-dependence and help.
The bank continues to be resolute in its case and confident in its ability to defend its position and win the case. Their defense team strongly believe that Credit Suisse has a good legal and fact-based defense, and they eagerly look ahead to establishing their case in trial.
The Swiss-based bank is equally facing charges in Switzerland where it is preparing a defense against the country’s prosecutors looking to get about a $45 million fine from the bank over failure to comply with anti-money laundering rules.