C Suisse argues that deadline in fraud case has passed

Minutes To Midnight

As Credit Suisse sees it, time has run out on New York Attorney General Eric Schneiderman’s pursuit of Wall Street banks for mortgage fraud that helped trigger the financial crisis.

Bloomberg reports that Schneiderman sued Credit Suisse in 2012 as part of a wide-ranging probe into mortgage bonds. He claimed the bank misrepresented the risks associated with $93.8bn in mortgage-backed securities issued in 2006 and 2007.

Credit Suisse asked a Manhattan judge in December to dismiss Schneiderman’s case, as well as his demand for as much as $11.2bn in damages. The bank argued that New York, by waiting so long to file the lawsuit, missed a three-year legal deadline for suing. The state countered that it had six years to file its complaint.

If the bank wins, Schneiderman will face a new roadblock as he considers similar multibillion-dollar claims against a dozen other Wall Street firms. The judge in New York State Supreme Court could rule at any time.

To access the complete Bloomberg article hit the link below:

Credit Suisse Waits for $11 Billion Answer in N.Y. Fraud Suit

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image: © Bilal Lashari

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