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Crisis-era RMBS lawsuits still overhang Credit Suisse - FT

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

Credit Suisse (NYSE:CSslips 0.7% in premarket trading as the Financial Times reports that the Swiss lender is facing damages in lawsuits that could exceed its reserves by up to $1.4B, according to regulatory filings.

The bank had $681M in litigation reserves at the end of 2018.

Even after a $5.3B settlement with the U.S. Department of Justice, Credit Suisse continues to fight lawsuits over financial crisis-era residential mortgage-backed securities long after most of its main rivals settled their cases.

The Swiss bank faces at least a dozen investor lawsuits over mortgage debt the bank securitized and which sank in value during the 2008-09 crisis. Included are court actions with investors, mortgage insurer MBIA (NYSE:MBI), the New Jersey Attorney General, and the recovers of several failed banks.

Bank of America (NYSE:BAC) and JPMorgan Chase (NYSE:JPM) don't list any open RMBS action in their annual filings, and Citigroup (NYSE:C) lists just four open actions, the FT reports.

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