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Credit Suisse faces multiple lawsuits, settles with investors

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Credit Suisse began liquidating four funds of the bankrupt British factoring company Greensill in early March. So far, the Swiss bank has reportedly repaid 6.3 billion Swiss francs ($6.83 billion) to investors.

According to Reuters, the number two bank will offer investors special conditions, including a refund of fees. When AWP contacted the institution on Wednesday, a spokesperson confirmed the information, but refused to provide further details.

credit suisse

Credit Suisse is facing legal action from clients since the case broke. Experts estimate the possible costs of these proceedings to be 2 billion dollars.

“As a sign of our appreciation for these clients, Credit Suisse is now in a position to grant special terms, starting with Switzerland,” said a spokesman. According to the spokesman, the bank with two veils is “making good progress in recovering assets from debtors and through insurance claims, but it will still take time.” he said.

The bank plans to refund clients their fees on a quarterly basis, according to Reuters, citing sources close to the matter. Funds generated from other providers will not be refunded.

Legal action

Credit Suisse began liquidating four funds of the bankrupt British factoring company Greensill in early March. The bank has repaid 6.3 billion Swiss francs to investors so far. Since the funds were suspended, the bank has recovered CHF 7 billion ($7.59 billion) from investors.

Multiple clients have filed lawsuits against the bank since the scandal broke. Several analysts estimate the potential costs of lawsuits to be more than $2 billion.

Reuters reports that Credit Suisse has reached an agreement to waive fees for their clients with the Swiss Financial Market Supervisory Authority (Finma). While the institution has brought proceedings against the bank, the Zurich judiciary has also issued search warrants, which the bank claims that they are not directed at the bank.

Additionally, Credit Suisse has launched an investigation into the Greensill scandal.

For MetaNews.

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Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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