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.