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Credit Suisse rattled by media reports

Credit Suisse goes on the offensive Keystone Archive

Credit Suisse has rejected media reports that its investment arm, Credit Suisse First Boston, may face legal action in connection with the collapse of Enron.

This content was published on March 8, 2002 - 15:08

In a statement, Switzerland's second biggest bank said CSFB was not involved in structuring the partnerships that led to Enron's bankruptcy.

It said all the partnerships structured by CSFB were approved by rating agencies, external legal counsel and external auditors.

Credit Suisse noted that Enron had done business with many investment banks, including CSFB and the brokerage Donaldson, Lufkin and Jenrette that Credit Suisse acquired in 2000.

The bank said the transactions were "absolutely transparent and well documented."

Credit Suisse also said that accusations about the independence of its analysts were unfounded. It said CSFB had in place strict policies to guard against conflicts of interest.

SAirGroup involvement

In the same statement released on Friday, the group also rejected speculation about a potential compensation claim by some foreign banks against Credit Suisse's involvement with the SAirGroup.

Media reports have focused on claims that Credit Suisse continued to extend loans to the SAirGroup during 2001, creating the impression that the aviation conglomerate was still worthy of credit. The bank's CEO and chairman, Lukas Mühlemann, was a member of the SAirGroup board of directors at the time.

The statement says Mühlemann was not involved at any time in business relations between the Credit Suisse Group and the SAirGroup. It adds that the Rating agency Standard & Poor's rated the SAirGroup as "investment grade" and confirmed the company's creditworthiness.

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