Credit Suisse will face a possible fine of 10,000 million (8,200 million euros) that asks the Attorney General of New York for his role in an alleged fraud in the sale of mortgage-backed securities before the recession.
A judge of the Supreme Court of the State of New York rejected the bank’s request to dismiss the complaint, and gave the green light to the request of Attorney General Eric Schneiderman, considering that there are indications that the bank I could have committed this fraud. The fault can strengthen the authority of Schneiderman to pursue other banks in the future to their responsibility in the financial crisis.
Schneiderman sued Credit Suisse in November 2012, claiming the second largest bank in Switzerland misrepresented the risks associated with mortgage-backed securities for doubtful loans, mortgages called trash. Last year, the bank argued to dismiss the complaint in a court hearing in Manhattan that the State had taken three years to file the complaint but the prosecutor argued that the deadline for filing the complaint was six years.
Armed with Martin, a legal tool to combat fraud powerful, Schneiderman has tried to present similar lawsuits against other banks, together with the introduction of programs to provide relief to struggling homeowners and Law curb rising foreclosures.
JPMorgan Chase was also sued by Schneiderman’s office, on the same subject but reached an agreement with the Department of Justice to settle the case by paying 13,000 million.
Credit Suisse was already sanctioned this year with a fine of 2,600 million (1,800 million euros) for having advised US clients to evade the payment of taxes under the protection of bank secrecy.
SOURCE: US Agencies
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