Credit Suisse is expecting a Bermuda court to hand down a $500m (£370m, €437m) penalty to its life insurance subsidiary Credit Suisse Life Bermuda.
The firm said in an announcement that it has “previously taken reserves against this matter and intends to pursue all available legal actions” and it “will consider whether any further reserves are required as part of our first-quarter results due to be published on 27 April 2022”.
According to Reuters, the Bermuda case is linked to people seeking compensation for losses caused by former Credit Suisse client adviser Patrice Lescaudron,
He was convicted and jailed in Geneva in 2018 for defrauding customers.
The adviser hid mounting losses of CHF143m (£114m, $154m, €135m) via fraudulent transactions and then took CHF30m for himself. He was sentenced to five years in prison as a result.
Since then, Credit Suisse has argued that the client adviser hid his activity from the bank and that it was not aware of his fraudulent operation.