Credit Suisse agrees to compensate Lehman product investors

Credit Suisse has agreed to pay compensation to a further 1,700 clients who invested in Lehman Brothers capital protected products. The Swiss bank, as a gesture of goodwill and without acknowledging any legal obligation, reached an agreement with the Fédération Romande des Consommateurs (the French Federation of Consumers) to make redemption offers of approximately 50 million Swiss francs (US$42.7 million).

Under the agreement the bank will make an offer to clients, who had assets of up to 500,000 Swiss francs with Credit Suisse as of August 31 last year and who had invested over 20% of those assets in 100% capital protected Lehman products. Based on the analysis of the individual situation of each client represented by the Fédération Romande des Consommateurs, the compensation will cover between 50% and 70% of the nominal value of the redeemed products.

According to the bank in certain hardship