Pact Won't Drive Wedge Between Bank, New York Fed
Credit Suisse Group AG's ability to serve as a counterparty to the Federal Reserve Bank of New York hasn't been affected by the Swiss bank's criminal tax-evasion settlement reached earlier this week with U.S. authorities.</br></br>The New York Fed considered the bank's settlement and decided to continue its counterparty relationship with Credit Suisse, a New York Fed official said Wednesday. The official noted that Credit Suisse's settlement pertained to activities that didn't involve the bank's broker-dealer business, and that the bank has taken steps to address compliance issues.</br></br>The firm keeping its primary-dealer status is the latest example of how the criminal guilty plea that Credit Suisse reached with prosecutors is designed to minimize the collateral damage that historically flowed from guilty pleas or criminal convictions.</br></br>Primary dealers trade billions of dollars of government securities with the Fed every day, and must meet various broker financial requirements and other standards to participate.</br></br>Credit Suisse is one of 22 such firms. A spokeswoman for Credit Suisse declined to comment.