Tomorrow marks the end of the American century, at least according to the head of the Eurasia Group. But we’re still calling the shots for the next few hours, and to mark it, we’re dotting the i’s and crossing the t’s on the last bit of hegemonic business vis à vis a foreign bank.
Credit Suisse has formally agreed to pay $5.3 billion to settle with U.S. authorities over claims it misled investors in residential mortgage-backed securities it sold in the run-up to the 2008 financial crisis….
"The bank concedes that it knew it was peddling investments that were likely to fail," Principal Associate Attorney General Bill Baer said in a statement announcing the deal.
What with people on the inside calling said investments “complete crap” and “utter complete garbage,” it kind of had to, we guess. It did not, of course, have to cut this deal last month, and almost didn’t. But then it thought better of things.
Credit Suisse, which had announced the agreement in principle on Dec. 23, said in a statement it was "pleased to have reached an amicable settlement that allows the bank to put this legacy matter behind it."
And quite a legacy it is! More than $11 billion in losses, according to the New York Attorney General’s office. Which reminds us: This legacy matter isn’t exactly behind Credit Suisse just yet.
The bank is still defending itself against lawsuits by the New York and New Jersey attorneys general over similar claims involving billions of dollars in investor losses.