Credit Suisse to Pay $495m Settlement Related to 2008 Financial Crisis

Credit Suisse (NYSE: CS), one of the world’s leading financial service providers, has reached a final settlement related to mortgage-backed securities (MBS) business conducted in the build-up to the financial crisis of 2007-2008, the company announced on Monday in a press release.

According to the Credit Suisse settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term terms, the bank is obliged to make a payment of $495 Million to fully resolve past and potential future claims connected with its “Residential Mortgage Backed Securities (RBMS)” business, worth more than $10 billion.

The settlement was signed with the New Jersey Attorney General (NJAG), which alleges more than $3 billion in overall damages was agreed to in a case filed almost ten years ago.

“Credit Suisse is pleased to have reached an agreement that allows the bank to resolve the only remaining RMBS matter involving claims by a regulator and the largest of its remaining exposures on its legacy RMBS docket. The settlement, for which Credit Suisse is fully provisioned, marks another important step in the bank’s efforts to pro-actively resolve litigation and legacy issues,” Credit Suisse commented in Monday’s press release.

It is not the first, and nor the highest, settlement that Credit Suisse has agreed to pay in connection with its sale of RMBS. In January 2017, the Department of Justice of the United States (DoJ) announced a $5.28 billion settlement related to the bank’s activity regarding the sales, marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term, issuance and securitization of mortgage-backed products between 2005 and 2007.

Credit Suisse Deepens Its Losses. Company Shares Tank

Although the current settlement will probably not strain Credit Suisse’s financial balance, the latest reports present a rather unpleasant reality. As reported by Finance Magnates in July, the Swiss bank presented its financial results for Q2 2022. The reported net revenue slipped 29% percent yearly (YoY) to CHF 3.6 billion. Compared to the previous quarter, the results were 17% lower.

The net loss for the reported period stood at CHF 1.59 billion while analysts expected a definitely more modest loss at around CHF 398.16 million.

Current problems and previous scandals are also clearly seen in the company’s stocks. Year-to-date (YTD) loss exceeded 50%; only this month CS shares tested and rebounded from a record low level of just $3.40 per share. The same shares were worth $14 before the Covid-19 pandemic.