Credit Suisse: agreement to settle last subprime lawsuit

The bank will pay an amount of 507 million euros to settle the compensation claims in court, she said.





SourceAFP


The New Jersey attorney general criticized the bank for not providing adequate information about the risks associated with mortgage-backed securities.
© FABRICE COFFRINI / AFP

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vsSwitzerland announced Monday that it had reached a definitive agreement with New Jersey’s attorney general to settle the latest dispute over mortgage-backed securities dating back to the 2008 financial crisis. like the subprime crisis. Subprime loans, riskier for the lender, were variable rate mortgages made to low-income households.

Credit Suisse, the subject of intense press and market rumors as it nears a strategy update following repeated scandals, will pay $US495 million ($507 million). million euros) to settle legal claims, the bank said in a statement. This amount is covered by provisions, she says.

A complaint filed in 2013

The settlement with the U.S. attorney “marks another important step in the bank’s efforts to proactively resolve past litigation and issues,” Credit Suisse said. The New Jersey case was the latest, but also the largest, in the damages claims for these titles. In the lawsuit filed in 2013, the New Jersey attorney general criticized the bank for not disclosing enough risk information about $10 billion in mortgage-backed securities. The compensation claims in the lawsuit amounted to DKK 3 billion.

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