C Suisse to pay $885m in settlement with FHFA

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Credit Suisse agreed to pay $885m to settle lawsuits by the U.S. Federal Housing Finance Agency over mortgages sold to Fannie Mae and Freddie Mac.

Bloomberg reports that the company will book a charge of $312m after taxes in the fourth quarter of 2013, resulting in a restatement of results to a net loss of $9.06m for the period, the bank said.

Credit Suisse was among 18 lenders sued by the FHFA in 2011 to recoup losses on about $200bn in mortgage-backed securities sold to the two government-sponsored companies before the financial crisis. Nine companies, including JPMorgan, Deutsche Bank and UBS, have agreed to pay more than $9.2bn to settle similar lawsuits by FHFA.

'It’s definitely good for Credit Suisse to have this thing out of the way', said Guido Hoymann, an analyst with Bankhaus Metzler.

To access the complete Bloomberg article hit the link below:

Credit Suisse to Pay $885 Million to Settle FHFA Lawsuits

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