Credit Suisse (NYSE:CS) slips 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.
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