Credit Suisse Takes $80 Million Charge on MassMutual Settlement

  • Third-quarter charge will cover costs beyond existing reserves
  • Agreement resolves two lawsuits over pre-crisis RMBS sales

Credit Suisse Group AG said it settled lawsuits brought by Massachusetts Mutual Life Insurance Co. over the sale of mortgage-backed securities before the financial crisis.

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.

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