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Credit Suisse formally agrees to pay $5.28B over missold RMBS

Credit Suisse Group AG formally agreed to pay $5.28 billion in a final settlement with the U.S. Department of Justice related to the company's conduct in the packaging, securitization, issuance, marketing and sale of RMBS between 2005 and 2007.

Credit Suisse will pay a civil monetary penalty of $2.48 billion to the DOJ and will provide consumer relief amounting to $2.8 billion within five years post-settlement.

"Credit Suisse claimed its mortgage backed securities were sound, but in the settlement announced today the bank concedes that it knew it was peddling investments containing loans that were likely to fail," Principal Deputy Associate Attorney General Bill Baer said in a Jan. 18 DOJ press release.

In a separate release, Credit Suisse said it "is pleased to have reached an amicable settlement that allows the bank to put this legacy matter behind it."