Credit Suisse to pay $1.4 mln auction-rate fine

* Credit Suisse USA to pay fine to Texas

* Bank agreed to fine in a Jan. 25 consent order

NEW YORK, Jan 27 (BestGrowthStock) – Credit Suisse Group AG
(CSGN.VX: ) agreed to pay a $1.37 million fine to Texas for its
role in the collapse of the auction rate securities market in
early 2008, leaving investors without access to their money.

Credit Suisse Securities (USA) LLC agreed to the fine, part
of a previously announced settlement, in a Jan. 25 consent
order it reached with Texas Securities Commissioner Denise
Voigt Crawford, according to the Texas State Securities Board
on Tuesday.

“In 2008, the North American Securities Administrators
Association (NASAA) and the New York State Attorney General
reached an overall industry settlement relating to auction rate
securities,” Credit Suisse spokesman David Walker said in a
statement. “This particular settlement represents the
formalization of Credit Suisse’s settlement with Texas.”

In September 2008, Credit Suisse agreed to buy back $550
million of the debt from retail investors, and pay a $15
million fine overall.

Auction-rate securities are long-term debt instruments
whose interest rates are regularly reset through auctions.

The market froze in February 2008 as the credit crunch took
hold, trapping investors and issuers and prompting complaints
from investors around the country who were unable to withdraw
money from their accounts.

Many states launched probes of Wall Street practices in the
market following allegations that they misled clients by
assuring them the auction-rate securities were a safe, liquid
alternative to cash, certificates of deposit or money market

Since 2008, state securities regulators have secured deals
with banks including Citigroup Inc (C.N: ), Merrill Lynch
(BAC.N: ), Goldman Sachs (GS.N: ), Deutsche Bank (DBKGn.DE: ),
Wachovia (WFC.N: ), JPMorgan Chase (JPM.N: ), Morgan Stanley (MS.N: ) (Read more about the money market today. )
and UBS AG (UBSN.VX: ).

The settlements have returned more than $61 billion to
investors, the largest return of funds in history.

Stock Market Research

(Reporting by Paritosh Bansal. Editing by Robert MacMillan)

Credit Suisse to pay $1.4 mln auction-rate fine