Credit Suisse As Good At Haggling MBS Settlements As MBS Themselves
Credit Suisse has quite enough legal and regulatory problems at home, it must be said. Between the Bulgarian mafia money laundering, client-swindling and internal espionage, the bank’s in-house lawyers and compliance people are plenty busy. And that’s before we even get into the $3 billion-plus in lawsuits it still faces stemming from its mortgage-backed securities bonanza pre-crisis that turned into lots of other people’s problems post. So you can forgive the bank for rather eagerly putting one of those crisis-era lawsuits behind it—one it has already lost, it must be said—especially seeing as how suddenly reasonable the plaintiffs therein are feeling.
Credit Suisse Group AG agreed to pay $600 million to settle a lawsuit over mortgage securities that collapsed in the 2008 financial crisis…. The plaintiff, MBIA Insurance Corp., said late Thursday that it had reached an agreement, after a post-trial court decision that ordered the Swiss bank to pay about $604 million in damages. The settlement means there will be no appeal trial….
MBIA had been seeking $686.7 million plus interest while Credit Suisse had estimated damages of $597.7 million.
Credit Suisse may not be very good at spying, but it’s right on the money predicting how much its malfeasance will cost.
Credit Suisse Pays $600 Million to Settle U.S. Mortgage Case [Bloomberg]
