Credit Suisse tries to help US probe into rivals’ block exchanges – Bloomberg News

The logo of Swiss bank Credit Suisse is seen at a branch in Zurich, Switzerland, November 3, 2021. REUTERS/Arnd WIegmann

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Feb 25 (Reuters) – Credit Suisse Group AG (CSGN.S) is trying to help the U.S. Department of Justice bring a potential block trade-related case against rivals Morgan Stanley (MS.N) and Goldman Sachs Group Inc (GS.N), Bloomberg News reported on Friday. (https://bit.ly/3t9DIPZ)

The Swiss bank’s push to provide assistance apparently goes beyond banks’ usual cooperation with requests for information, the report said, citing people familiar with the matter.

Credit Suisse officials made a presentation to the U.S. Attorney’s Office for the Southern District of New York, pointing out potential issues with the collapse of Archegos Capital Management last year that resulted in billions of dollars in losses for investors. global banks, according to the report.

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Credit Suisse did not immediately respond to a request for comment from Reuters.

The collapse of Archegos has drawn regulatory attention to the practice of block trading. Last week, Reuters reported that the U.S. Securities and Exchange Commission was investigating whether financial executives may have broken rules by warning hedge funds ahead of such trades.

In a filing on Thursday, Wall Street bank Morgan Stanley (MS.N) said regulators and prosecutors in the United States were investigating various aspects of its block trading business. Read more

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Reporting by Niket Nishant in Bengaluru; Editing by Aditya Soni

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