credit suisse to pay 885m over us mortgage bonds
Last Updated : GMT 15:30:33
Arab Today, arab today
Arab Today, arab today

Credit Suisse to pay $885m over US mortgage bonds

Arab Today, arab today

Arab Today, arab today Credit Suisse to pay $885m over US mortgage bonds

Washington - AFP

Swiss bank Credit Suisse agreed Friday to pay $885 million to settle US charges it sold shoddy mortgage bonds to Fannie Mae and Freddie Mac ahead of the financial crisis. Credit Suisse will pay about $651 million to Fannie and $234 million to Freddie, said the Federal Housing Finance Agency, the conservator of the two companies rescued by government during the 2008 financial crisis. The FHFA said the settlement resolves all of its claims in two lawsuits against Credit Suisse. The claims alleged that Credit Suisse misrepresented the quality of billions of dollars of mortgage-backed securities it sold to Freddie and Fannie during 2005-2007. Credit Suisse agreed to the settlement while still "vigorously" denying the allegations in both cases. The agency said the bank's documentation for the securities contained misstatements and omissions of material facts concerning the quality of the underlying mortgage loans, the creditworthiness of the borrowers, and the practices used to originate such loans. During the years-long housing bubble, banks' loose lending practices extended sub-prime mortgages to borrowers with patchy credit and at-risk finances. Those borrowers began to default on the loans, spurring the subprime crisis that collapsed the bubble and led to the 2008 financial crisis. "As a result of defendants' misstatements and omissions of material fact, Fannie Mae and Freddie Mac have suffered substantial losses as the value of their holdings has significantly deteriorated," the suit said. The FHFA was created in 2008 to oversee the government's conservatorship of Fannie and Freddie, which back most of the mortgages financed in the United States.. The settlement marks the latest big government settlement with a US banking giant in the aftermath of the housing bust. Since the beginning of the year, the FHFA has announced $2.26 billion in settlements, including the latest with Credit Suisse. Wall Street bank Morgan Stanley paid $1.25 billion and French bank Societe Generale paid $122 million in February. For all of 2013, the FHFA recovered nearly $8 billion on behalf of taxpayers through such settlements. FHFA sued 18 financial institutions in 2011 alleging securities law violations, and in some cases, fraud, in relation to their marketing of mortgage backed securities. Credit Suisse said Friday it would take an after-tax charge of 275 million Swiss francs ($311.6 million) on its 2013 financial results. "This agreement resolves Credit Suisse's largest mortgage-related investor litigation," the Zurich-based bank said in a statement. Credit Suisse is also one of 14 Swiss banks under US investigation for allegedly accepting tens of billions of undeclared dollars from US citizens trying to avoid taxes. A former banker of Credit Suisse pleaded guilty on March 12 to the charge. Andreas Bachmann, a Swiss citizen, admitted that between 1994 and 2006 he engaged in a "wide-ranging" conspiracy to defraud US tax officials, the Justice Department said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

credit suisse to pay 885m over us mortgage bonds credit suisse to pay 885m over us mortgage bonds

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

credit suisse to pay 885m over us mortgage bonds credit suisse to pay 885m over us mortgage bonds

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Visit Jamaica for more than just sun

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today UN warns of conflict in Gaza

GMT 08:39 2017 Tuesday ,21 November

UN warns of conflict in Gaza
Arab Today, arab today Missouri problem mirrors woes

GMT 06:46 2017 Tuesday ,21 November

Missouri problem mirrors woes
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Fedra happy for “Between Two Worlds” success

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 00:54 2017 Monday ,20 November

Mideast in danger as London explores

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday