Bank Credit Suisse has been ordered by a United States judge to compensate STMicroelectronics, a semiconductor maker, for unauthorised investments it made on its behalf.This content was published on March 24, 2010 - 15:34
A US district court judge in New York upheld a 2009 arbitration award and cited a “record replete with evidence of Credit Suisse’s fraud”.
The bank will have to pay back the unpaid balance totalling around $354 million (SFr375 million) of a $431 million award.
“Credit Suisse has grasped unsuccessfully at straws to avoid payment of the arbitration award in this case,” district judge Deborah Batts said.
Switzerland’s largest bank had been hired by Europe’s largest maker of semiconductors to make investments. The bank was accused of having bought auction-rate securities after saying it would invest in student loans backed by the US government.
STMicroelectronics sued after the investments went bad.
“We respectfully disagree with the court’s decision and are evaluating an appeal,” a Credit Suisse spokesman said in a statement.
swissinfo.ch and agencies
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