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BANK

Credit Suisse eyes new cuts as profits plunge

Swiss banking giant Credit Suisse said on Thursday that third-quarter net profit plunged 63 percent to 254 million Swiss francs ($225.6 million) and that it would enact further cost cutting measures.

Published: 25 October 2012 09:23 CEST
Credit Suisse eyes new cuts as profits plunge
Photo: Giorgia Xenakis (File)

The net profit slightly exceeded the 230 million francs expected by analysts surveyed by Swiss financial news agency AWP.

However the bank increased its intake of new funds by 20 percent compared to the level the previous quarter to 5.3 billion francs and said that assets under management rose by 3.1 percent to 1.25 trillion.

We are successfully executing on the strategic measures we began last year," said chief executive Brady W. Dougan said in a statement.

We have realigned our business to better meet the demands of a changed regulatory and market environment and, in doing so have substantially reduced risks," he added.

While Credit Suisse said it has already significantly cut costs and improved efficiencies, it announced further it would seek to make an additional billion in cuts in 2014 and 2015 to take total savings to 4 billion francs.

Thanks to such measures Credit Suisse will be able to attain its target of 15 percent return on equity over the business cycle, said Dougan.

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BANK

Deutsche Bank to pay $130m to settle US bribery probes

Deutsche Bank will pay $130 million to settle a foreign bribery probe and fraud charges in precious metals trading, US officials announced on Friday.

Published: 9 January 2021 15:08 CET
Deutsche Bank to pay $130m to settle US bribery probes
A woman walks past the offices of Deutsche Bank in London. Photo: Tolga Akmen / AFP
The bribery case relates to illegal payments and to false reporting of those sums on the bank's books and records between 2009 and 2016, the Department of Justice said in a press release.
   
The bank “knowingly and wilfully” kept false records after employees conspired with a Saudi consultant to facilitate bribe payments of over $1 million to a decision maker, the DOJ said.
   
In another case, the bank paid more than $3 million “without invoices” to an Abu Dhabi consultant “who lacked qualifications… other than his family relationship with the client decision maker,” the DOJ said.
   
In addition to criminal fines and payments of ill-gotten gains, Deutsche Bank agreed to cooperate with government investigators under a three-year deferred prosecution agreement.
 
   
In the commodities fraud case, Deutsche Bank metals traders in New York, Singapore and London between 2008 and 2013 placed fake trade orders to profit by deceiving other market participants, the DOJ said.
   
The agreement took into account Deutsche Bank's cooperation with the probes, DOJ said.
   
“Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others so that they could unfairly obtain and retain lucrative business projects,” said Acting US Attorney Seth D. DuCharme of the Eastern District of New York.
   
“This office will continue to hold responsible financial institutions that operate in the United States and engage in practices to facilitate criminal activity in order to increase their bottom line.”
   
“We take responsibility for these past actions, which took place between 2008 and 2017,” said Deutsche Bank spokesperson Dan Hunter, adding that the company has taken “significant remedial actions” including hiring staff and upgrading technology to address the shortcomings.
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