IPFS News Link • Housing
New York sues Credit Suisse over mortgage securities
• RawStory.comFollowing a similar suit against JPMorgan Chase in October, New York Attorney General Eric Schneiderman said the Swiss bank deceived investors over the quality of residential mortgage-backed securities (RMBS) that it sold in 2006 and 2007.
The suit said that the bank knew that the RMBS it was selling as quality investments were full of high-risk, subprime home loans that the bank’s own traders branded “garbage.”
Moreover, Credit Suisse extended financing to the originators of the bad loans which it packaged into RMBS for sale.