Credit Suisse Finalizes $5.3 Billion DOJ Settlement Over Mortgage Claims

By Steve GoldsteinMarketsMarketWatch Pulse

In another in a string of mortgage-related settlements with big banks, the Justice Department announced a $5.28 billion settlement with Credit Suisse over its packaging, securitization, issuance, marketing and sale of residential mortgage-backed securities between 2005 and 2007. Credit Suisse will have to pay a $2.48 billion fine and provide $2.8 billion in other relief, including relief to underwater homeowners, distressed borrowers and affected communities, in the form of loan forgiveness and financing for affordable housing.

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