News

Credit Suisse stunned financial markets on Tuesday night after revealing it expected to pay the US authorities about $536m to settle issues relating to financial dealings with Iran.

The Swiss bank, which has gained a reputation for avoiding accidents during the credit crisis, declined to provide details, beyond the contents of a brief press release.

In its statement, Credit Suisse said the negotiations related to “US dollar payments during the period 2002 to April 2007 involving parties that are subject to US economic sanctions”.

The deal, for which some provisions have already been taken, is expected to require an additional charge of SFr445m ($427.6m) before tax in the fourth quarter, equivalent to a net impact of SFr360m in the period.