Actionable news
All posts from Actionable news
Actionable news in CS: CREDIT SUISSE GROUP,

Credit Suisse Bans Trades in Some Venezuela Debt Amid Crisis

  • Bank says it has ‘no appetite’ to help fund Maduro government
  • UBS also said to be scrutinizing Venezuelan bond trading

Credit Suisse Group AG has barred its traders from buying or selling certain Venezuelan securities as the political and economic crisis in the South American country intensifies.

The Zurich-based bank will no longer trade two bonds issued by the government and the state oil company or any notes from a Venezuelan entity issued after June 1, according to an Aug. 7 company memo seen by Bloomberg. The lender is also restricting business with Venezuelan private individuals and companies. A Credit Suisse representative confirmed the memo’s contents.

The decision comes after the U.S. began imposing sanctions on some Venezuelan officials in response to the anti-democratic turn of President Nicolas Maduro, who installed a widely criticized assembly to rewrite the country’s constitution. It also marks a victory for Venezuela’s opposition leaders, who had been urging Wall Street banks not to throw Maduro a financial lifeline, and spearheaded a public shaming of Goldman Sachs Asset Management after it purchased some of the securities now prohibited by Credit Suisse.

“In light of the political climate and recent events in Venezuela, and actions taken by the current government, we want to ensure that Credit Suisse does not provide the means for anyone to violate the human rights of the Venezuelan people,” the memo says.

The prohibited securities are government debt due in 2036, as well as 6 percent coupon bonds issued by Petroleos de Venezuela, or PDVSA, due in 2022. While most brokers are already shunning the...