Credit Suisse settles a lawsuit in the US related to residential mortgage lending. The bank will have to dig deep into its pockets.
Credit Suisse reached an agreement to settle a US lawsuit related to residential mortgage-backed securities (RMBS) involving transactions prior to 2008 involving claims tied to over $10 billion of RMBS, the bank announced Monday.
With the settlement, Credit Suisse agreed to a one-time payment of $495 million to settle claims in full with the New Jersey Attorney General (NJAG), which alleged over $3 billion in damages in a litigation case filed in 2013.
Pleased to Reach an Agreement
According to Credit Suisse, the settlement resolves the only outstanding matter related to RMBS involving claims by a regulatory authority which was also the largest of the bank's remaining exposures on its legacy RMBS docket. Credit Suisse said it was «pleased to have reached an agreement», adding it is fully provisioned to meet and «marks another important step in the bank’s efforts to pro-actively resolve litigation and legacy issues».
