Credit Suisse pays $495 million to settle legacy U S case Nrlpa:Obnk - Mtpıx HEAD TOPICS

Credit Suisse pays $495 million to settle legacy U S case

10/23/2022 8:00:00 AM

WATCH Credit Suisse said it would make a pay-out of $495 million to settle claims brought by the New Jersey Attorney General related to the bank' s residential mortgage-backed security business before 2008

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Reuters

WATCH: Credit Suisse said it would make a pay-out of $495 million to settle claims brought by the New Jersey Attorney Gen eral related to the bank's residential mortgage-backed security business before 2008 Credit Suisse has agreed to pay $495 million to settle a case related to mortgage-linked investments in the United States, the latest pay-out related to past blunders that have battered the Swiss bank's reputation. Expects to resolve outstanding cases in next six monthshas agreed to pay $495 million to settle a case related to mortgage-linked investments in the United States, the latest pay-out related to past blunders that have battered the Swiss bank's reputation. Register now for FREE unlimited access to Reuters.comdollarsThe latest RMBS case, brought by the New Jersey Attorney General, alleged Credit Suisse had "misled investors and engaged in fraud or deceit in connection with the offer and sale of RMBS." Read more:
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A beloved educator and civil rights advocate in the Hempstead community is leading the 134th annual Homecoming Parade as grand marshal. Read more >> Who will bear the brunt? If Credit Suisse loves its bankers, set them freeThe Swiss bank may bring outside investors into its dealmaking unit, to insulate it from parental turmoil. The business could be worth up to $6 bln, valued in line with boutique advisory shops. Yet the best way to hit such a price tag is for Credit Suisse to cut it loose. Breakingviews - If Credit Suisse loves its bankers, set them freeCredit Suisse is a weak bank with some strong bankers. So Chair Axel Lehmann is considering bringing in outside money to insulate those rainmakers from the parent group’s turmoil. A more caring gesture would be to find them a new, less troubled home. ? Exclusive: Credit Suisse U.S. asset manager draws interest from Janus, Blue Owl and others, sources sayMoney managers such as Janus Henderson Group and investment firms including Blue Owl Capital Inc are weighing potential offers for Credit Suisse Group AG's U.S. asset management unit, people familiar with the matter said on Friday. Harriette Cole: The bosses all love her, and she dumps her work on meMy co-worker does as little work as possible and she still gets the credit. Child Credit Freeze Federal Legislation Stalled Due To PoliticsA California bill that would help protect kids from ID theft is one step closer to becoming law. if we had a state government that understood how to fund the people of america and stop funding foreigner nation i think we would not see this problem, we have a problem where money is being concentrated in the hand of ? {from all these government} this is a system problem Black Adam Producer Responds To Frustrating Post-Credits Cameo LeakBlackAdam producer Hiram Garcia opened up about the 'frustrating' post-credits scene leak. 'You work so hard, but look, we understand that this ending and this dream, this family dream that we had to bring to life...' Settlement ends bank's largest outstanding RMBS case Credit Suisse says settlement is fully covered by provisions Bank still has five cases to resolve Expects to resolve outstanding cases in next six months ZURICH, Oct 17 (Reuters) - Credit Suisse (CSGN..reported .(IVZ. S) has agreed to pay $495 million to settle a case related to mortgage-linked investments in the United States, the latest pay-out related to past blunders that have battered the Swiss bank's reputation. The lender has been paying out billions of dollars to resolve legal cases linked to its residential mortgage-backed securities (RMBS) business in the run up to the 2008 financial crisis. The decline in mortgage payments reduced the value of the assets, leading to huge losses for investors. By being one step removed from Credit Suisse’s larger troubles, they might regain the swashbuckling spirit of prior acquisitions like and Donaldson, Lufkin & Jenrette. Register now for FREE unlimited access to Reuters.com Register Switzerland's second biggest bank is trying to move on from these legacy issues which have dogged its performance and cost it billions of dollars . AllianceBernstein, Ameriprise, and Centerbridge did not immediately respond to a comment request. The bank is also trying to recover from other missteps, including losing more than $5 billion from the collapse of investment firm Archegos last year, when it also had to suspend client funds linked to defunct financier Greensill Capital. SECOND COMING Imagine, then, that Credit Suisse spins out its advisory and capital-markets business. The latest RMBS case, brought by the New Jersey Attorney General, alleged Credit Suisse had "misled investors and engaged in fraud or deceit in connection with the offer and sale of RMBS." The attorney general's office had claimed more than $3 billion in damages in a 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," the bank said in a statement. That’s assuming the global pot settles at $130 billion, halfway between this year’s depressed run-rate and last year’s levels, based on Refinitiv data. "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.TO) business last year for 615 million pounds ($695. " 1/2 The logo of Swiss bank Credit Suisse is seen at its headquarters in Zurich, Switzerland February 22, 2022. REUTERS/Arnd Wiegmann Read More The New Jersey case was the largest of its remaining exposure on its legacy RMBS business, Credit Suisse said, with five remaining cases at various stages of litigation. These are expected to be resolved in the next six months, a person familiar with the matter told Reuters. The total cost likely to be much less than $100 million, the source added. RMBS are a debt-based securities, seen as similar to bonds, which are backed by the interest paid on home loans packaged together to sell to investors. But poorly constructed RMBS's contributed to the financial crisis in 2008 - when wider groups of mortgages defaulted leading to big losses. Credit Suisse, whose share price has more than halved in the last 12 months, has already paid out huge sums to resolve claims related to the products, including a $5.3 billion deal with the Department of Justice in 2017. It said at that time products it sold did not meet underwriting guidelines. It also paid $600 million to MBIA Inc last year after the New York based-municipal bond insurer paid out hundreds of millions to compensate investors. The bank, one of the largest in Europe and one of Switzerland's global systemically important banks, is scheduled to release details of a much anticipated alongside third-quarter results on Oct. 27. In June, the bank was convicted of failing to prevent money laundering by a Bulgarian cocaine trafficking .