A British court on Monday approved the extradition of a former Credit Suisse trader to the United States, where he is accused of inflating the prices of subprime mortgage-backed bonds to the tune of $540 million in 2007-2008.
The case of Kareem Serageldin will now be sent to Home Secretary Theresa May, the interior minister, who under British law has the final say. She is expected to give the green light for the extradition to take place.
Serageldin, 39, the Swiss bank's former global head of structured credit, is accused of artificially inflating the prices of mortgage-backed bonds between August 2007 and February 2008, when the U.S. subprime housing market was collapsing and the bonds were losing value at an alarming rate.
According to the U.S. indictment against him, Serageldin devised the scheme to "enhance his apparent job performance" because he wanted a larger bonus and he knew he was in line for a big promotion.
Before the price manipulation came to light,
This article is only available in full to Compliance Complete
North America UK and Europe Middle East Asia Australasia Subscribers who are logged in.
Please log in to see if you can view this content.