Credit Suisse and Elbit Systems have agreed to a settlement of the Israeli defense contractor’s lawsuit seeking to hold the bank liable for the conduct of two former brokers convicted of defrauding investors.
Bloomberg reports that Elbit, Israel’s biggest non-government developer of defense technology, said it would withdraw its lawsuit 'in return for the payment of an undisclosed amount', according to a company statement yesterday.
Ex-Credit Suisse broker Eric Butler was convicted by a federal jury in Brooklyn, New York, in August 2009 of intentionally misleading clients by saying their investments were backed by federally guaranteed student loans when the instruments were actually auction-rate securities tied to the housing market. Victims sustained losses of more than $1.1 billion, according to the government.
In the meantime, American Banker reports that JPMorgan Chase's Chief Information Officer is leaving the company.
Guy Chiarello, who joined the nation's biggest bank in November 2007, 'has decided to pursue new opportunities outside the firm', Paul Compton, JPMorgan Chase's chief administrative officer, said Tuesday in an internal memo.
JPMorgan Chase has named executive Mike Ashworth interim CIO while it searches for a permanent successor to Chiarello, Compton said.
A Financial Industry Regulatory Authority arbitration panel imposed financial penalties, including $250,000 of punitive damages, after finding that an RBC broker falsified the risk tolerance of Linda and Russell Rupp, and misrepresented that the U.S. government wouldn’t let Lehman Brothers fail, according to a decision dated last week.