Credit Suisse to pay $29m in US reg­u­la­tor's mort­gage case

The Pak Banker - - COMPANIES/BOSS -

Credit Suisse has agreed to pay more than $29 mil­lion to re­solve a U.S. reg­u­la­tor's claims that it sold toxic mort­gage-backed se­cu­ri­ties to credit unions that later failed, ac­cord­ing to court pa­pers filed on Thurs­day. The deal, dis­closed in a fil­ing in fed­eral court in Man­hat­tan, re­solves one of sev­eral law­suits by the Na­tional Credit Union Ad­min­is­tra­tion against banks over their sale of mort­gage-backed se­cu­ri­ties be­fore the 2008 fi­nan­cial cri­sis.

The deal boosts to more than $2.5 bil­lion the amount the NCUA has re­cov­ered from banks through law­suits it be­gan fil­ing in 2011, the U.S. reg­u­la­tor said.

NCUA Board Chair­man Deb­bie Matz said in a state­ment the reg­u­la­tor would "con­tinue to ag­gres­sively pur­sue re­cov­er­ies against Wall Street firms that con­trib­uted to the cor­po­rate cri­sis." A spokesman for Credit Suisse de­clined to com­ment. The court fil­ing, which de­scribed an of­fer of judg­ment in the case, said it would not have any ef­fect on a sep­a­rate but sim­i­lar law­suit by the NCUA against Credit Suisse pend­ing in Kansas.

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