Credit Suisse resists US demand

Lower fine: Christmas decorations seen at the headquarters of Swiss banks UBS and Credit Suisse at the Paradeplatz square in Zurich. Credit Suisse is said to be seeking a smaller penalty than the one proposed by the US Department of Justice. – Reuters

NEW YORK: The US Department of Justice has asked Credit Suisse to pay between US$5bil and US$7bil to settle a probe over its sale of toxic mortgage securities in the run-up to the 2008 financial crisis, a source with knowledge of the matter said, but the bank has resisted settling for that amount.

The size of the suggested settlement indicates that the cost to the bank may be higher than analysts had expected and explains why Credit Suisse management, according to a second source, has been seeking a smaller penalty.