Banks under pressure: Credit Suisse
Credit Suisse (CS): It has clinched a billion-dollar U.S. settlement over how it sold securities made up of dud mortgages to investors in the run-up to the financial crisis. The litigation over mortgage securities is one of the last large chunks of litigation hanging over CS – a vestige of the years before the financial crisis of 2008-09, when the bank was at Wall Street. U.S. rivals and most recently Deutsche Bank have paid billions to settle legal problems which have ensued from the practice of selling toxic securities up to 2007. The matter will cost $5.28 billion to set aside: CS will pay $2.48 billion to U.S. authorities according to an agreement in principle reached. The bank will also pay $2.8 billion in so-called consumer relief over the next five years.