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Credit Suisse reaches settlement with New York state in RMBS case

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Credit Suisse reaches settlement with New York state in RMBS case

Credit Suisse Group AG settled a lawsuit with New York state in the week of Dec. 31 relating to alleged mis-selling of residential mortgage-backed securities in 2006 and 2007, Reuters reported Jan. 7.

A source familiar with the settlement told the newswire that the bank would pay far less than it was originally asked by the prosecutors to pay.

This person said the latest figure Credit Suisse may have to pay is in the low, two-digit millions. The New York attorney general initially filed an $11 billion RMBS complaint against the bank in 2012.

The Swiss bank allegedly misrepresented the quality of bonds underlying RMBS when it sold them in 2006 and 2007. The structured finance products played a central role in the 2008 financial crisis.