Credit Suisse Brought to Court for Ex-Rogue Banker’s Fraudulent Activity

Credit Suisse’s legal turmoil continues as billionaire client and ex-Georgia PM Bidzina Ivanishvili sued one of its subsidiaries, Credit Suisse Trust Ltd. (Singapore) for $800mn. Prior to this, Ivanishli had successfully claimed against another of the bank’s subsidiaries, Credit Suisse Life (Bermuda) Ltd. The Bermudan Supreme court ruled in favor of Ivanishvili, forcing Credit Suisse to pay him $600mn in damages. In the latest turn of events, Ivanishvili continues to bring the matter against the Swiss bank, citing reckless oversight of his assets. The case will go to trial in September in Singapore if there are no last-minute injunctions. If the court rules against Credit Suisse, it will add to its growing list of negative headlines and drain its revenue in the form of extra litigation costs

Credit Suisse’s 4.5% perps callable in 2030, are trading at 72.2, up by 0.67 points to yield 6.23%.

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