Question

E2-35. Use Information from Form 20-F Stock of Credit Suisse Group trades on the New York Stock Exchange as well as in various European stock markets. The company's Form 20-F reported the following.

Answer 1

a.) The Security and Exchange Commission (SEC) requires all publicly traded companies in the U.S to follow GAAP. Since the stock of Credit Suisse Group trades on the New York Stock Exchange it prepares its financial statements in accordance with the U.S GAAP.

b.) In April 2014, a unit of Credit Suisse Group AG was investigated in Geneva for money laundering and it's four employees were charged for being complicit in fraud and money laundering by authorizing trade instructions from TG Investments. Swiss financial regulator FINMA too had flagged deficiencies in Credit Suisse's processes involving FIFA, Petrobas and Petroleos de Venezuela. The money being laundered may land in the hands of the terrorists and potentially be used to carry out terror and/or other criminal activities. To allay such fears , Credit Suisse is explaining its anti-corruption policies here and assuring the investors about the seriousness with which it takes such issues.