STOCK MARKET WATCH -- Monday, 26 November 2012

[Demeter]

12. Credit Suisse Sued by N.Y. Over Losses on Mortgage Bonds

http://www.bloomberg.com/news/2012-11-20/credit-suisse-sued-by-n-y-over-losses-on-mortgage-bonds.html

Credit Suisse (CSGN) Group AG was accused in a lawsuit by New York Attorney General Eric Schneiderman of deceiving investors in mortgage-backed securities that were sold before the financial crisis.

Credit Suisse, which last week agreed to settle U.S. claims that it misled mortgage-bond investors, committed “multiple fraudulent and deceptive acts” in promoting and selling the securities, Schneiderman’s office said in a complaint filed yesterday in New York State Supreme Court.

“This lawsuit against Credit Suisse marks another significant step in our efforts to hold financial institutions accountable for the misconduct that led to the worst financial crisis in nearly a century,” Schneiderman said in a statement.

The lawsuit is an enforcement action by a state-federal task force established earlier this year to investigate misconduct in the bundling of mortgage loans into securities before the housing bust. Schneiderman is co-chairman of the group, which includes officials from the U.S. Justice Department and the Securities and Exchange Commission.

“We firmly reject this complaint, which recycles baseless claims from private lawsuits and uses an inaccurate and exaggerated number,” Jack Grone, a spokesman for Zurich-based Credit Suisse, said in a statement. “We look forward to presenting our defense in court.”

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