Mortgage lawsuit: Credit Suisse denied liability disclaimer
Bank files motion to have suit for fraud over sale of questionable mortgage securities
NEW YORK:
Swiss banking giant Credit Suisse can be prosecuted for its role in the US housing finance meltdown, according to a court decision, which dismissed the company’s bid to halt a suit. The bank had filed a motion to have a suit for fraud over the sale of questionable mortgage securities that dealt buyers $11.2 billion in losses in the housing crisis dismissed. But Justice Marcy Friedman of New York’s Supreme Court authorized the state’s attorney general to pursue the suit in a decision on Wednesday. Freidman denied the bank’s claim that a three-year statute of limitations had been exceeded, insisting that the state had six years to file against Credit Suisse. New York Attorney General Eric Schneiderman sued Credit Suisse in November 2012, stating that the Swiss bank deceived investors over the quality of residential mortgage-backed securities (RMBS) that it sold in 2006 and 2007.
Published in The Express Tribune, December 28th, 2014.
Swiss banking giant Credit Suisse can be prosecuted for its role in the US housing finance meltdown, according to a court decision, which dismissed the company’s bid to halt a suit. The bank had filed a motion to have a suit for fraud over the sale of questionable mortgage securities that dealt buyers $11.2 billion in losses in the housing crisis dismissed. But Justice Marcy Friedman of New York’s Supreme Court authorized the state’s attorney general to pursue the suit in a decision on Wednesday. Freidman denied the bank’s claim that a three-year statute of limitations had been exceeded, insisting that the state had six years to file against Credit Suisse. New York Attorney General Eric Schneiderman sued Credit Suisse in November 2012, stating that the Swiss bank deceived investors over the quality of residential mortgage-backed securities (RMBS) that it sold in 2006 and 2007.
Published in The Express Tribune, December 28th, 2014.