Credit Suisse has to dig deep again: having agreed to a settlement with U.S. claimants in a case dating back to the financial crisis, the bank is forced take a charge in the third quarter.
Switzerland’s Credit Suisse reached an agreement to settle litigation in connection with mortgage-backed securities in the U.S., it said in a statement today. The company will pay $79.5 million to the claimants and will include the charge in the third quarter results.
The case that now has been settled involved the sale of structured products during the past financial crisis. The cases were brought by Massachusetts Mutual Life Insurance and related to the sale of 19 residential mortgage-backed securities.
CS had already taken provisions for two further agreements in the third quarter, Swiss agency «SDA» reported today. The company didn’t say how much it had put aside, according to the report.
