Credit Suisse tries to help US probe into rivals’ block exchanges – Bloomberg News


The logo of Swiss bank Credit Suisse is seen at a branch in Zurich, Switzerland, November 3, 2021. REUTERS/Arnd WIegmann

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Feb 25 (Reuters) – Credit Suisse Group AG (CSGN.S) is trying to help the U.S. Department of Justice build a case related to block trading against rivals Morgan Stanley (MS.N) and Goldman Sachs Group Inc ( GS.N), Bloomberg News reported on Friday. (https://bit.ly/3t9DIPZ)

The Swiss bank’s push to provide assistance apparently goes beyond banks’ usual cooperation with requests for information, the report said, citing people familiar with the matter.

Credit Suisse made a presentation to the U.S. Attorney’s Office for the Southern District of New York, pointing out potential issues with the collapse of Archegos Capital Management last year that resulted in billions of dollars in losses for global banks , according to the report.

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A Credit Suisse representative declined to comment.

Archegos’ collapse has drawn regulatory attention to 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 is investigating whether financial executives may have broken rules by warning hedge funds ahead of such trades.

In a filing on Thursday, Morgan Stanley (MS.N) said regulators and prosecutors in the United States were investigating various aspects of its block trading business. Read more

China’s securities regulator has ordered the Wall Street bank to provide it with information about the U.S. investigation, the Financial Times reported on Friday, citing a notice posted on the China Securities Regulatory Commission’s website. https://on.ft.com/3sifCTY

Morgan Stanley did not immediately respond to a request for comment from Reuters.

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Reporting by Niket Nishant in Bengaluru; Editing by Aditya Soni

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