Credit Suisse agrees $885M deal to settle mortgage-bond claims

|About: Credit Suisse Group AG (CS)|By:, SA News Editor

Credit Suisse (CS) has agreed to pay $885M is a deal with the Federal Housing Finance Agency to settle allegations that the Swiss bank misled Fannie Mae (FNMA) and Freddie (FMCC) about the quality of mortgage loans that the company sold them from 2005-2007. Fannie will receive $234M and Freddie $651M.

As is often the way in these matters, Credit Suisse didn't admit to liability or wrongdoing.

Following the deal, Credit Suisse is taking a charge of 275M Swiss francs ($312M) on its earnings and now says it made a Q4 net loss of 8M francs after initially reporting a 267M franc profit.