NEW YORK (TheStreet) -- Credits Suisse Group (CS) allegedly helped sell billions of dollars of securities that ultimately played a role in toppling Portugal's Banco Espirito Santo, the Wall Street Journal reports.
The Swiss bank was responsible for putting together securities that were issued by offshore investment vehicles and then sold to retail customers of the bank, the Journal said.
It is unclear what, if any, direct role Credit Suisse had in selling the securities to bank customers, the Journal added.
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Now those investment products are at the center of an unfolding scandal. Banco Espirito Santo was bailed out and broken up this month. Other parts of the Espirito Santo group have filed for bankruptcy amid alleged fraud and accounting problems, according to the Journal.
Shares of Credit Suisse are slightly lower in pre-market trade.
TheStreet Ratings team rates CREDIT SUISSE GROUP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CREDIT SUISSE GROUP (CS) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself."