Saturday, March 22, 2014

Credit Suisse to pay US$885m over bonds

Credit Suisse to pay US$885m over bonds - Taipei Times

"Swiss bank Credit Suisse agreed on Friday to pay US$885 million to settle US charges it sold shoddy mortgage bonds to Fannie Mae and Freddie Mac ahead of the financial crisis.

Credit Suisse will pay about US$651 million to Fannie and US$234 million to Freddie, said the US Federal Housing Finance Agency (FHFA), the conservator of the two companies rescued by government during the 2008 financial crisis.

The FHFA said the settlement resolves all of its claims in two lawsuits against Credit Suisse.

The claims alleged that Credit Suisse misrepresented the quality of billions of dollars of mortgage-backed securities it sold to Freddie and Fannie during 2005 to 2007."

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