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