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Credit Suisse to Pay $5.3 Billion in U.S. Mortgage Accord

  • Bank to take $2 billion pretax charge in fourth quarter
  • Follows $7.2 billion Deutsche Bank settlement earlier Friday
Bloomberg business news

Deutsche Bank, Credit Suisse Settle U.S. Mortgage Probe

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Credit Suisse Group AG agreed to pay $5.28 billion to resolve a U.S. investigation into its business in mortgage-backed securities as officials work through a backlog of crisis-era bank cases.

The Swiss lender will pay a $2.48 billion civil penalty and $2.8 billion in relief for homeowners and communities hit by the collapse in home prices, it said in a statement Friday. Credit Suisse will take a pretax charge of about $2 billion in addition to its existing reserves during the fourth quarter.