Credit Suisse Settles Case Related To Residential Mortgage-Backed Securities

Credit Suisse Group AG CS will pay $495 million as a final settlement with the New Jersey Attorney General (NJAG) related to its Residential Mortgage-Backed Securities (RMBS) business, with transactions dating back to before 2008.
The Attorney General alleged over $3 billion in damages in a litigation case filed in 2013.
Credit Suisse recently approached investors for the fourth time in around seven years to raise fresh capital.
The attorney general's office alleged that Credit Suisse had "misled investors and engaged in fraud or deceit in connection with the offer and sale of RMBS," Reuters reported.
"Credit Suisse is pleased to have reached an agreement that allows the bank to resolve the only remaining RMBS matter involving claims by a regulator and the largest of its remaining exposures on its legacy RMBS docket," the bank said in a statement.
"The settlement, for which Credit Suisse is fully provisioned, marks another important step in the bank's efforts to pro-actively resolve litigation and legacy issues."
Last month, Credit Suisse announced its plans to cut around 5,000 jobs as part of a cost reduction drive.
The battered Swiss bank is also weighing splitting its struggling investment bank business into three parts.
Price Action: CS shares are up 2.96% at $4.52 during the premarket session on the last check Monday.