10.17.2022

Credit Suisse Reaches $495m Settlement in RMBS Legacy Case

10.17.2022
Credit Suisse Reaches $495m Settlement in RMBS Legacy Case

Credit Suisse Group announces that it has reached a final settlement with the New Jersey Attorney General (NJAG) related to its Residential Mortgage-Backed Securities (RMBS) business with transactions dating back to before 2008.

Under the terms of the settlement, Credit Suisse will make a one-time payment of USD 495 million to fully resolve claims tied to more than USD 10 billion of RMBS at issue, for which the NJAG had alleged over USD 3 billion in damages in a litigation case filed in 2013.

Credit Suisse is pleased to have reached an agreement that allows the bank to resolve the only remaining RMBS matter involving claims by a regulator and the largest of its remaining exposures on its legacy RMBS docket. The settlement, for which Credit Suisse is fully provisioned, marks another important step in the bank’s efforts to pro-actively resolve litigation and legacy issues.

Source: Credit Suisse

Related articles

  1. C.S. Venkatakrishnan said his prognosis is excellent and his condition is curable.

  2. The agencies found a shortcoming related to data quality and data management.

  3. Goldman Sachs Asset Management agreed to pay a $4m penalty.

  4. Credit Suisse’s strategy is good news for its 2,800 employees at Madison Avenue

    Investment bank has been impacted by industry-wide slowdown in capital markets and reduced sales & trading.

  5. AllianceBernstein will deconsolidate Bernstein Research from its financial statements after closing.