Daily News: December 29, 2014

Credit Suisse Said to Face $10B Mortgage Fraud Suit

Bloomberg reported that Credit Suisse was ordered to face a $10 billion lawsuit by New York’s attorney general accusing the Swiss bank of fraud in the sales of mortgage-backed securities before the 2008 financial crisis.

Bloomberg said a New York State Supreme Court justice rejected the bank’s request to dismiss the case, a move that gives leverage to Attorney General Eric Schneiderman to demand internal bank documents and force a settlement.

Bloomberg noted in addition to forcing Credit Suisse to defend itself or settle, the ruling may strengthen Schneiderman’s hand in punishing other banks for bad behavior tied to the recession.

To read the entire Bloomberg article, click here.