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  Business   In Other News  23 Dec 2016  Credit Suisse reaches agreement on US mortage case

Credit Suisse reaches agreement on US mortage case

AFP
Published : Dec 23, 2016, 1:52 pm IST
Updated : Dec 23, 2016, 1:53 pm IST

Credit Suisse paid $5.3 billion to settle the disputes over the sale of mortgage-backed securities.

The settlement, which still needs approval by the bank's board, would release Credit Suisse from
 The settlement, which still needs approval by the bank's board, would release Credit Suisse from "potential civil claims by the DoJ

Geneva: Credit Suisse said Friday it had reached an agreement with US authorities to pay almost $5.3 billion to settle disputes over the sale of mortgage-backed securities.

"Under the terms of the settlement, Credit Suisse would pay to the DoJ (US Department of Justice) a civil monetary penalty of $2.48 billion," the Swiss banking giant said in a statement.

"In addition, Credit Suisse would provide consumer relief totaling $2.8 billion over the course of five years post settlement," it said.

The settlement, which still needs approval by the bank's board, would release Credit Suisse from "potential civil claims by the DoJ related to its securitisation, underwriting and issuance" of mortgage-backed securities, it added.

The business was mostly carried out from 2005 to 2007, it said.Just hours earlier, Germany's Deutsche Bank said it had agreed to pay a total of $7.2 billion (6.9 billion euros) to settle a case with the DoJ over its role in the subprime mortgage crisis.

On Thursday, the DoJ sued the British financial giant Barclays, accusing the bank of massive fraud in the sale of mortgage-backed securities, which contributed to the global financial crisis of 2008.

Tags: credit suisse, deutsche bank, barclays