Reply To:
Name - Reply Comment
Last Updated : 2024-04-26 02:12:00
REUTERS: Credit Suisse Group AG has agreed to pay more than $29 million to resolve a U.S. regulator’s claims that it sold toxic mortgage-backed securities to credit unions that later failed, according to court papers filed on Thursday.
The deal, disclosed in a filing in federal court in Manhattan, resolves one of several lawsuits by the National Credit Union Administration against banks over their sale of mortgage-backed securities before the 2008 financial crisis.
The deal boosts to more than $2.5 billion the amount the NCUA has recovered from banks through lawsuits it began filing in 2011, the U.S. regulator said. NCUA Board Chairman Debbie Matz said in a statement the regulator would “continue to aggressively pursue recoveries against Wall Street firms that contributed to the corporate crisis.”
A spokesman for Credit Suisse declined to comment. The court filing, which described an offer of judgment in the case, said it would not have any effect on a separate but similar lawsuit by the NCUA against Credit Suisse pending in Kansas.
The lawsuit subject to the deal centered on mortgage-backed securities underwritten and sold by UBS that Southwest Corporate Federal Credit Union and Members United Corporate Federal Credit Union bought for more than $228.8 million from 2006 to 2007.
The NCUA, which filed the lawsuit in 2013 on behalf of the failed credit unions, alleged that the securities’ offering documents contained untrue statements that the loans were originated in accordance with underwriting guidelines. The NCUA alleged that in reality, the loans’ originators had “systematically abandoned the stated underwriting guidelines” described in the offering documents. The case is National Credit Union Administration Board v. Credit Suisse Securities (USA) LLC, U.S. District Court, Southern District of New York, No. 13-6736.
Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.
Reply To:
Name - Reply Comment
US authorities are currently reviewing the manifest of every cargo aboard MV
On March 26, a couple arriving from Thailand was arrested with 88 live animal
According to villagers from Naula-Moragolla out of 105 families 80 can afford
Is the situation in Sri Lanka so grim that locals harbour hope that they coul