Kareem Serageldin, the ex-global head of Credit Suisse’s structured credit trading business, pleaded not guilty to charges he led a 2007 scheme to mark up the value of debt securities to meet targets and boost year-end bonuses for his $5.35bn trading book.
Bloomberg reports that Serageldin, a U.S. citizen who lives in England, was taken into custody by the Federal Bureau of Investigation last week after he was extradited from the U.K., Assistant U.S. Attorney Eugene Ingoglia told U.S. Magistrate Judge Kevin Fox at Serageldin’s arraignment Friday in Manhattan.
Fox ordered Serageldin released on $1.5m bond, to be co-signed by his brother and guaranteed with $750,000 in cash, a bail package agreed between Serageldin and prosecutors before the court proceeding. Serageldin is scheduled to return to court April 12.
Finally, Reuters reports that a federal appeals court rejected UBS's bid to dismiss a U.S. regulator's lawsuit seeking to hold the bank responsible for losses on mortgage securities at Fannie Mae and Freddie Mac.
The 2nd U.S. Circuit Court of Appeals said the Federal Housing Finance Agency did not wait too long to sue UBS over the $6.4bn of mortgage securities that Fannie Mae and Freddie Mac bought. It also rejected UBS' contention that the FHFA lacked standing to sue.