Two traders, David Higgs and Salmaan Siddiqui, surrendered to the FBI Wednesday morning and are expected to plead guilty. At least two others are also expected to be accused of inflating prices of mortgage bonds to boost their bonuses, despite knowing the values of those securities had dropped.
Credit Suisse will not be charged.
The investigation stems from $2.85 billion in write-downs that Credit Suisse took on collateralized debt obligations in 2008.
Credit Suisse revealed those collateralized debt obligations losses in early 2008, and blamed them on a group of rogue traders whom the bank said had deliberately mispriced securities, and a failure of internal controls.
The arrests come as the Obama administration steps up efforts to prosecute Wall Street bankers and others for misconduct related to the financial crisis.
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