In reaching a settlement in the U.S. pension case, Credit Suisse will pay a fine and cooperate in litigation against other defendants.
Credit Suisse is the first plaintiff to have reached a resolution in the case filed by the Iowa Public Employees Retirement System, and others. The Swiss bank along with additional defendants was accused of conspiring to keep stock lending «in the stone age» since 2009, according to a «Reuters» report (signup required) over the weekend.
Credit Suisse and other banks sought to charge investors excessive fees by hindering the development of the market in which securities are lent to other firms or individuals for a fee, by boycotting the use of startup platforms that would have such transactions less expensive.
Providing Cooperation
In addition to a cash payment of $81 million (74 million Swiss francs), the settlement obliges Credit Suisse to «provide cooperation to plaintiffs in litigating and ultimately trying their case against the remaining defendants,» according to a court filing.
Goldman Sachs, JPMorgan and three other banks are involved in the case.
Credit Suisse said while its position is the claims were without merit, «we are pleased to resolve the litigation,» according to Reuters.
