Credit Suisse to Pay US$885m to Settle US Lawsuits
Credit Suisse Group has agreed to pay US$885m to settle lawsuits by the US Federal Housing Finance Agency (FHFA) over mortgages sold to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation – aka Fannie Mae and Freddie Mac.
Switzerland’s second-biggest bank said that it will book a charge of 275m Swiss francs (CHF) or US$312m after taxes in the fourth quarter of 2013, resulting in a restatement of results to a net loss of CHF8m for the period.
Credit Suisse was one of 18 lenders sued by the FHFA in 2011 to recoup losses on about US$200bn in mortgage-backed securities sold to the two government-sponsored companies before the 2008 financial crisis. Nine companies, including JPMorgan Chase, Deutsche Bank and UBS have agreed to pay more than US$9.2bn to settle similar lawsuits by FHFA.