Credit Suisse settles NY auction-rate probe

NEW YORK (AP) -- Credit Suisse Group will buy back $548 million in auction-rate securities and pay a $15 million fine to settle a probe into the sale of the risky investments, the New York State attorney general's office says.

The Swiss banking giant becomes the latest institution to settle a series of state and federal investigations, with penalties now totaling more than $1 billion.

Under the settlement announced Tuesday, Credit Suisse has agreed to buy back the securities from individuals, charities and small businesses.

The auction-rate securities market involved investments that resembled corporate debt but whose interest rates were reset at regular auctions. They were sold as being as safe as cash, but the market for them collapsed in February.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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