Credit Suisse in $885M US lawsuit settlement

AP News
Posted: Mar 21, 2014 2:13 PM

GENEVA (AP) — Swiss bank Credit Suisse says it will pay $885 million to settle lawsuits over securities sold to U.S. government-controlled mortgage finance companies Fannie Mae and Freddie Mac before the financial crisis.

The bank said Friday the agreement with the Federal Housing Finance Agency, which oversees Fannie and Freddie, will result in it taking a 275 million-franc ($311 million) charge on last year's fourth-quarter earnings.

Credit Suisse says the settlement resolves all claims in two lawsuits filed by the FHFA, related to the sale of about $16.6 billion in residential mortgage-backed securities between 2005 and 2007. The securities soured when the housing market collapsed.

Credit Suisse says the earnings adjustment resulting from the charge means it lost 8 million francs in the fourth quarter.