Credit Suisse to compensate more clients exposed to Lehman

Credit Suisse to compensate more clients exposed to LehmanZurich  - Credit Suisse said Tuesday it would compensate more clients who invested in Lehman Brothers' financial products, which have lost all their value since the investment bank's collapse last September.

A deal was reached with the Swiss consumer group Federation Romande des Consommateurs for clients who had assets up to 500,000 Swiss francs (427,758 dollars) as of August 31 last year and had invested over 20 per cent of those assets in capital-protected Lehman products.

"Credit Suisse will make redemption offers worth a total of approximately 50 million francs to around 1,700 clients for capital-protected Lehman products," a statement from the bank read.

The offer will cover between 50 and 70 per cent of the nominal value of the redeemed products.

The Swiss bank said it would also make a redemption offer to clients who do not fully meet the criteria defined in the deal with the consumer group "but who are experiencing financial or personal distress due to losses on capital-protected Lehman products."

Combined with previous deals to another 2,000 clients, the bank has now offered 150 million francs for individual redemption on exposure to the now worthless Lehman products.

Credit Suisse called the offer "a gesture of goodwill" and not an acknowledgment of any legal obligation.(dpa)