Payment to AB from Credit Suisse fro over $2 Billion Fraud??
This was in today's news, I wonder how much would AB get from this and that could give a boost to AB stock price. :
(Reuters) - Credit Suisse Group Inc faces a potential $2 billion of exposure over fraud that occurred a decade ago at National Century Financial Enterprises, a result of a federal judge's determination on how to apportion responsibility.
Friday's decision by U.S. District Judge James Graham could expose the Swiss bank to hundreds of millions of dollars of added liability over the activities of Lance Poulsen, who co-founded National Century in 1990 and was its chief executive. He is now serving a 30-year prison term and is presumed insolvent.
The decision is also a victory for bondholders including the state of Arizona, AllianceBernstein Holding LP, Lloyds TSB Bank Plc, MetLife Inc, Allianz SE's Pimco unit that accused Credit Suisse of deceiving it about the company and missing its estimated $2.9 billion fraud.
I'm guessing that any recovery would simply be returned to whichever AB fund invested here. The beneficiaries would be AB customers rather than AB itself. The main benefit to AB IMO would be a little polish on the AB reputation that has been in the dumps since its' catastrophic bets on Lehman Brothers,Bear etc.