NY AG Levies Large Fines On Credit Suisse, Barclays Over Dark Pools

UPDATED

New York Attorney General Eric Schneiderman has reached a long-awaited settlement with two major Wall Street banks over alleged improprieties involving activities in their private trading venues known as "dark pools."

As first reported by FOX Business back in the summer, Credit Suisse (NYSE:CS) was in settlement talks with the New York Attorney General over charges that the firm gave preferential treatment to high-frequency traders who bought and sold stocks through its dark pool.

Under the terms of the deal, Credit Suisse will pay $84.3 million in fines and disgorgement as part of a joint settlement with the New York Attorney General's office and the Securities and Exchange Commission.

“We are pleased to have resolved these matters with the SEC and the New York Attorney General,” a Credit Suisse spokesperson said in a statement.

Also part of the announcement will be a separate settlement with Barclays (NYSE:BCS) totaling $70 million for similar charges. A Barclays spokesman declined to comment.

A formal announcement of the settlement is expected to come on Monday.

In a statement provided to FOX Business, New York Attorney General Eric Schneiderman said, “These cases mark the first major victory in the fight against fraud in dark pool trading that began when we first sued Barclays: coordinated and aggressive government action, admissions of wrongdoing, and meaningful reforms to protect investors from predatory, high-frequency traders.  We will continue to take the fight to those who aim to rig the system and those who look the other way.”

An SEC spokesman had no immediate comment.

FOX Business was first to report the inquiry into Barclays over similar charges: that the bank gave preferential treatment to high-frequency traders over other investors in its dark pool.