Swiss banking group Credit Suisse and some of its subsidiaries has reached a $385m agreement with failed US investment bank Lehman Brothers and some of its subsidiaries to settle legacy claims from 2009.
The settlement follows Credit Suisse’s demand to compensate for losses due to termination of derivatives transactions between the two companies when Lehman filed for bankruptcy. The agreement is currently pending court approval.
The settlement amount is significantly lower than the original amount demanded by the Swiss bank from Lehman, which collapsed around a decade ago triggering the financial crisis.
Credit Suisse expects its strategic resolution unit (SRU) to take a $70m hit in the case.
“As previously disclosed, this amount is consistent with its existing SRU guidance for 2018 and as such will not have a material impact to the bank. We remain on track with the wind down of our SRU division by end of 2018,” Credit Suisse said in a statement.
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