The major Swiss bank Credit Suisse (CS) has reduced further legacy assets in the USA.
CS reached a settlement with the New Jersey Attorney’s Office.
It’s about mortgage-backed securities transactions (RMBS) that were concluded before the financial crisis.
As part of the settlement, CS is making a one-time payment of $495 million, according to a statement.
According to its own statements, the bank will thus settle claims worth more than ten billion dollars for which the public prosecutor’s office had claimed damages of over three billion dollars in a case filed in 2013. The payment is fully covered by provisions.
Largest and only remaining RMBS case
According to CS, the agreement is an important step. Because it was the only remaining RMBS matter in which a supervisory authority had asserted claims. And it was also the largest remaining.
RMBS – Securitized Residential Mortgages
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RMBS (Residential Mortgage Backed Securities) are mortgage-backed securities transactions in the American real estate market that were the main trigger of the financial crisis at the time. Many big banks have been accused of misleading customers when selling such junk mortgages. When the real estate market collapsed, investors in RMBS securities lost a lot of money.
In recent years, there have been various proceedings in connection with RMBS. For example, CS reached a settlement in April 2021 in which it paid 500 million US dollars. At the beginning of 2021, the provisions for these proceedings had been increased.
SRF 4 News, October 17, 2022, 9:00 a.m.; awp/rtr/sch;
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