Credit Suisse in $885 million settlement

[Eugene]

Source: CNNMoney

Credit Suisse in $885 million settlement

By Katie Lobosco March 21, 2014: 3:46 PM ET

NEW YORK (CNNMoney)

Credit Suisse is the latest big bank to pay for its role in the financial crisis.

The Swiss bank will pay $885 million to settle two lawsuits with the Federal Housing Finance Authority (FHFA) over $16.6 billion of mortgage-backed securities it sold between 2005 and 2007.

Credit Suisse is one of 18 banks and financial institutions sued in 2011 by the agency, which accused them of selling risky mortgage investments to backers Fannie Mae and Freddie Mac.

The settlement with Credit Suisse announced Friday is the ninth related to those lawsuits. Morgan Stanley agreed to pay $1.25 billion in February and Deutsche Bank reached a $1.9 billion settlement in December. Societe Generale agreed to pay $122 million to the FHFA two weeks ago.

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Read more: http://money.cnn.com/2014/03/21/investing/credit-suisse-mortgage-settlement/

[dixiegrrrrl]

1. In other words, the problem was ignored until the the Gov. felt the pain.

Only when the stockholders of Fannie and Freddie objected was there any action.
and Fannie and Freddie are NOT federal, but were taken over by the Gov't when facing bankruptcy during the melt down.
The 6 million or so homeowners whose mortgages were tainted, but still lost their homes, at the beginning of the trail of fraud, those owners have not had monentary damages paid, and there are still thousands of people who are still paying their mortgages, but their title will be clouded when the payments end, because all of the mortgages were securitized the same way as the ones that have been "settled" in lawsuits.