Credit Suisse Pays $600M To Settle Toxic RMBS Case
Law360 (February 12, 2021, 5:00 PM EST) -- Credit Suisse will pay $600 million to resolve decade-old litigation from a bond insurer that claims the Swiss bank misled it into insuring toxic residential mortgage-backed securities that imploded during the 2008 financial crisis.
MBIA Insurance Corp. told a New York state court on Thursday evening that it had reached a confidential settlement agreement with the bank and would discontinue, with prejudice, its suit alleging that Credit Suisse's false representations about the risk associated with the RMBS ultimately caused the insurer to pay out $386 million in claims.
Credit Suisse confirmed Friday that the settlement amount was $600 million, which is...
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