Credit Suisse fined $356 million
Swiss bank Credit Suisse has paid $356.8 million (SFr300.8 million) to STMicroelectronics to compensate for unauthorised payments it made on the chipmaker’s behalf.
STMicroelectronics said that this fully settled all outstanding litigation in connection with auction rate securities. The amount includes losses and costs associated with the court case.
In a statement on Thursday, STMicroelectronics said it expected to book a pre-tax profit of approximately $329 million in the income statement of the second quarter of 2011 as a result of the transaction.
The payment came after an United States appeals court last week mostly dismissed Credit Suisse’s bid to get an arbitrator’s award set aside, although it did reduce it by $75 million.
STMicroelectronics, a global leader in semiconductors with headquarters in Geneva, hired Credit Suisse to make investments. The bank was accused of having bought auction-rate securities after saying it would invest only in student loans backed by the US government.
STMicroelectronics sued after the investments went bad in the wake of the financial crisis.
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