Allegations

Credit Suisse denies improper gains in South Korea

Credit Suisse Group denied allegations that it made improper gains from trading South Korean companies' overseas convertible bonds.

Credit Suisse has “not conspired with any Korean convertible bond issuers to engage in market manipulation or any other improper conduct,” the Zurich-based company said in an e- mailed statement today. Media allegations that such trades took place are “baseless and unfounded.”

Credit Suisse has been in “regular dialogue” with the Korean regulatory authorities, and will continue to cooperate with them to help them reach the same conclusion, it said.

The Herald Business reported yesterday that Credit Suisse is being investigated by South Korean regulators concerning allegations the European company made gains from illegal trading in overseas convertible bonds of about 10 South Korean companies in the past two to three years.

South Korea's regulator, the Financial Supervisory Service, said yesterday it is investigating cases of possible improper trading of overseas securities, without naming any companies being probed.

(Published by Bloomberg 8, 2008)