Credit Suisse agrees to pay $885m to settle mortgage litigation - Banking Business Review


``The recent deal with Credit Suisse marks the ninth settlement FHFA has reached in relation to the 18 PLS lawsuits it filed in 2011 against banks that marketed over $200bn in bonds to Fannie and Freddie by giving materially false statements about the quality of mortgages.

Both Fannie Mae and Freddie Mac went bankrupt during the financial crisis of 2008, due to the high exposure of faulty residential mortgage-backed securities (RMBS) and were subsequently injected with nearly $187.5bn by the US government to keep them running.''

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