Credit Suisse has reached an agreement to settle its claim with the liquidators of Lehman Brothers. The Swiss company had to content with much less than it had hoped for.
The reports in the media in May proved correct: the legal tussle between the liquidators of Lehman Brothers in the U.S. and Credit Suisse is over and the Swiss No. 2 had to contend with less than it had hoped for. Credit Suisse on Wednesday published the details of the settlement it had reached.
The conflict centered around demands from Credit Suisse to cover for losses that stemmed from the derivatives trading of Lehman products. Credit Suisse originally demanded $1.2 billion – now it has settled for about $385 million in compensation.
Bad Bank Set for Closure
The lower-than-expected settlement leads to a $70 million impact at the strategic resolution unit of Credit Suisse, better known as the bad bank. The settlement has no material impact on the company, the bank said. Credit Suisse remains on track to wind down the strategic resolution unit by the end of 2018, it added in the statement.
