Credit Suisse is catching a break in a billion-dollar Mozambique loan scandal. British regulators are relaxing their part of a probe into the matter.
The Zurich-based bank need not fear prosecution in the U.K. over its role in a $2 billion loan scandal involving a fleet of tuna-fishing boats for Mozambique, «Reuters» reported.
The head of Britain's financial regulator, Andrew Bailey, told British lawmakers that the body had downgraded its investigation several months ago. «We concluded we couldn’t bring a criminal case,» Bailey told a committee.
The move takes pressure off Credit Suisse, which has found itself mired in scrutiny over the deals. Earlier this month, three former Credit Suisse investment bankers were arrested over their dealings with the heavily-indebted southern African nation.
Swiss, U.S. Probes
The case stems from Credit Suisse loans to Mozambique in 2012 and 2013 of more than $2 billion, which were kept from international creditors including the International Monetary Fund, or IMF. Roughly $500 million was allegedly misappropriated. Credit Suisse earned millions in fees for the loans to Mozambique, which in turn defaulted on its debt.
Britain's regulator, which began investigating three years ago, will continue to probe for any breaches of conduct, after dropping the criminal investigation. While a U.S. investigation has centered on alleged wrong-doing by the three ex-Credit Suisse bankers, Switzerland's financial regulator is also probing the bank's Mozambique dealings.
