The second largest bank in Switzerland, Credit Suisse Group AG (CSGN) will fork over $885 million to the Federal Housing Finance Agency. The amount will settle lawsuits over the mortgages sold to Fannie Mae and Freddie Mac.
The Federal Housing Finance Agency sued 18 lenders in 2011, including Credit Suisse. Lawsuits were proposed to take back the $200 billion in losses. Lenders including Credit Suisse sold mortgage-backed securities to the two government-backed companies just before the financial crisis.
The Credit Suisse settlement pertains to around $16.6 billion sold to Fannie Mae and Freddie Mac from 2005 to 2007. The FHFA has said the lender will pay around $651 million to Freddie Mac and around $234 million to Fannie Mae.
Credit Suisse isn’t the only lender paying big bucks in lawsuits thrown down by the FHFA. Deutsche Bank AG, UBS
AG (UBSN) and JPMorgan Chase & Co. have settled lawsuits as well, paying more than $9.2 billion.