Credit Suisse to pay clients for Lehman losses

ZURICH: Credit Suisse said on Tuesday that it will pay some 50 million Swiss francs ($43 million) to about 1,700 clients whose money was invested with the failed US investment bank Lehman Brothers.

Switzerland's second largest bank said it reached an agreement with Swiss consumer rights group FRC to repurchase papers sold to investors who had more than 20 percent of their funds - but not more than 500,000 Swiss francs - invested with Lehman by the end of August. The bank collapsed in September.

Special exceptions may be made in cases of severe personal hardship, the bank said.

Credit Suisse had previously paid about 100 million francs to some 2,000 clients to whom it had sold Lehman products.

FRC says Credit Suisse aggressively sold these investments to its clients in breach of its duty of care. The bank disputes this claim.

Credit Suisse shares rose 1.6 percent to 38.08 francs on the Zurich exchange Tuesday.