1 minute read
Credit Suisse said late last week that it set aside nearly $80 million to settle a pair of lawsuits brought by Massachusetts Mutual Life Insurance Company over 19 residential mortgage-backed securities from 2006 and 2007.
In a release, Credit Suisse said that the settlement covers all claims in two pending securities lawsuits filed by MassMutual against Credit Suisse and its subsidiaries: DLJ Mortgage Capital and Credit Suisse First Boston Mortgage Securities.
According to Credit Suisse, it plans to take a pre-tax charge of “approximately $79.5 million in addition to its existing reserves” to settle the lawsuits. The company did not disclose the total amount it plans to pay to settle the lawsuits.
The company said that it plans to take the $79.5 million charge its third quarter financial results.
“Credit Suisse is pleased to have reached an amicable settlement with MassMutual that allows the bank to put this legacy matter behind it,” the company said in a statement.
Earlier this year, Credit Suisse reached a $5.28 billion settlement with the Department of Justice over the bank’s packaging, securitization, issuance, marketing and sale of residential mortgage bonds between 2005 and 2007.
That settlement included a $2.48 billion civil penalty and a stipulation that Credit Suisse provide $2.8 billion in other relief, including relief to underwater homeowners, distressed borrowers and affected communities, in the form of loan forgiveness and financing for affordable housing.
