Credit Suisse Takes $80 Million Charge on MassMutual SettlementBy
Third-quarter charge will cover costs beyond existing reserves
Agreement resolves two lawsuits over pre-crisis RMBS sales
The lender will take a $79.5 million charge in the third quarter for costs not covered by existing reserves, the Zurich-based bank said in a statement Thursday. The settlement resolves two lawsuits and relates to the sale of 19 residential mortgage-backed securities.
Credit Suisse has settled a number of mortgage-related claims in the past year as Chief Executive Officer Tidjane Thiam seeks to put an end to outstanding legal issues and refocus the firm on wealth management. The lender completed a $5.3 billion agreement to settle with the U.S. Department of Justice in January and reached a $400 million accord with the National Credit Union Administration in May.
“Credit Suisse is pleased to have reached an amicable settlement with MassMutual that allows the bank to put this legacy matter behind it,” the firm said in a statement.