Credit Suisse tries to aid U.S. block-trading probe of rivals -Bloomberg News
Reuters
Published Feb 25, 2022 01:42PM ET
Updated Feb 25, 2022 06:00PM ET
(Reuters) -Credit Suisse Group AG is trying to help the U.S. Department of Justice potentially build a case related to block trading against rivals Morgan Stanley (NYSE:MS) and Goldman Sachs Group Inc (NYSE:GS), Bloomberg News reported on Friday. (https://
The Swiss bank's push to provide assistance apparently goes beyond banks’ routine cooperation with requests for information, the report said, citing people familiar with the matter.
Credit Suisse (SIX:CSGN) has delivered a presentation to the U.S. Attorney's Office for the Southern District of New York, flagging potential issues with the collapse of Archegos Capital Management last year that led to billions of dollars of losses for global banks, according to the report.
A representative for Credit Suisse declined to comment.
The Archegos meltdown drew regulatory scrutiny towards block trading, which refers to the practice of buying and selling blocks of shares. Broker-dealers engage in block trading, either on behalf of clients or as part of a hedging strategy.
Reuters reported last week that the U.S. Securities and Exchange Commission was probing whether financial executives may have broken the rules by tipping off hedge funds ahead of such trades.
In a filing on Thursday, Morgan Stanley said regulators and prosecutors in the United States were probing various aspects of its block-trading business.
China's securities regulator has ordered the Wall Street bank to provide it with information on the U.S. probe, the Financial Times reported on Friday, citing a notice on the China Securities Regulatory Commission's website. https:// on.ft.com/3sifCTY
Morgan Stanley did not immediately respond to a Reuters request for comment.
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Written By: Reuters
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