Wall Street exec jailed
The prison term makes the executive, Kareem Serageldin, one of the most senior Wall Street officials to serve time for criminal conduct during the financial crisis.
Serageldin remained stoic as Judge Alvin Hellerstein of the US District Court in Manhattan handed down the sentence, which was less than the roughly five-year sentence called for by non-binding sentencing guidelines. Judge Hellerstein showed mercy on Serageldin in part because of what he said was a toxic culture at Credit Suisse and its rivals.
"He was in a place where there was a climate for him to do what he did," the judge said. "It was a small piece of an overall evil climate inside that bank and many other banks."
Serageldin, 40, led a group at Credit Suisse that traded in mortgage-backed securities. As the housing market soared, his group made hundreds of millions of dollars for the bank by pooling mortgage assets, slicing them up and selling the pieces to investors.
New York Times
Frequently Asked Questions about this Article…
Kareem Serageldin is a former top executive at Credit Suisse Group who was sentenced to two years in prison for inflating the value of mortgage bonds during the financial crisis.
Kareem Serageldin led a group at Credit Suisse that traded in mortgage-backed securities, making significant profits for the bank by pooling mortgage assets and selling them to investors.
Judge Alvin Hellerstein showed leniency because he believed Serageldin was influenced by a toxic culture at Credit Suisse and other banks, which contributed to his actions.
Kareem Serageldin received a two-year prison sentence, which was less than the roughly five-year sentence suggested by non-binding sentencing guidelines.
Kareem Serageldin's actions, which involved inflating the value of mortgage bonds, were part of a broader issue within the bank's culture during the financial crisis.
Judge Hellerstein described the culture at Credit Suisse as a 'toxic' environment that contributed to the criminal conduct during the financial crisis.
As the housing market soared, Serageldin's group at Credit Suisse made hundreds of millions of dollars by trading mortgage-backed securities.
Kareem Serageldin's case highlights the broader issues of misconduct and toxic culture within major banks during the financial crisis.
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