New York sues Credit Suisse over mortgage securities

[Eugene]

Source: Reuters

New York sues Credit Suisse over mortgage securities

By Karen Freifeld
NEW YORK | Tue Nov 20, 2012 4:37pm EST

(Reuters) - New York Attorney General Eric Schneiderman brought a lawsuit on Tuesday accusing Credit Suisse Group AG of deceiving investors in mortgage-backed securities.

Credit Suisse, Switzerland's second-largest bank, misrepresented the quality of loans underlying residential mortgage-backed securities it sponsored and underwrote in 2006 and 2007, leading to $11.2 billion in losses to investors, according to the lawsuit.

The Zurich-based bank was aware of problems with the loans it bought, the lawsuit said, but rewarded quantity over quality, to the dismay of some Credit Suisse staffers.

Credit Suisse encouraged loan originators "to continue delivering ... crap," the lawsuit said, quoting one bank trader.

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Read more: http://www.reuters.com/article/2012/11/20/us-creditsuisse-lawsuit-newyork-idUSBRE8AJ1AR20121120

[dixiegrrrrl]

1. So this be a ...criminal case???

I have a suspicion that these suits against banks have more to do with grabbing much needed money from them, thus the fines will continue, any severe punishment will not happen.