Swiss banking giant Credit Suisse has agreed to pay $400m in fine to settle claims of improper sales of residential mortgage-backed securities that led to the fall of three credit unions in the US.
The settlement with the National Credit Union Administration (NCUA) involves U.S. Central Federal Credit Union, Southwest Corporate Federal Credit Union and Western Corporate Federal Credit Union.
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The bank agreed to the settlement without admitting or denying the wrongdoings.
Commenting on the settlement, Credit Suisse spokeswoman Nicole Sharp said: “We are pleased that with the finalization of this settlement, another legacy matter has been resolved.”
The settlement with Credit Suisse comes after a similar $445m settlement with another Swiss banking major UBS. Overall, NCUA has recouped nearly $5.1bn through their settlements with several banks over toxic securities sale to five collapsed federal credit unions.
Proceeds from the recoveries will be used to pay claims against the failed credit unions.
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By GlobalDataNCUA acting board chairman J. McWatters said: “NCUA has pursued litigation for nearly six years with the aim of holding responsible parties accountable and reducing the burden of stabilization fund assessments on credit unions.”
