Credit Suisse to pay $885 mln in mortgage-backed securities litigation

ZURICH, March 21 Fri Mar 21, 2014 1:55pm EDT

ZURICH, March 21 (Reuters) - Credit Suisse said it would pay $885 million to settle a litigation relating to mortgage-backed securities (MBS) purchased by U.S. government controlled mortgage companies Fannie Mae and Freddie Mac between 2005 and 2007.

The settlement will allow it to resolve all claims in two pending securities lawsuits filed by the Federal Housing Finance Agency (FHFA) against Credit Suisse, the Swiss bank said in a statement on Friday.

Credit Suisse will incur an after tax charge of 275 million Swiss francs ($311.17 million) in respect of its fourth-quarter and full-year 2013 financial results. Preliminary results reported on February 6 had to be adjusted accordingly, resulting in a fourth-quarter net loss of 8 million Swiss francs, the bank said.

($1 = 0.8838 Swiss Francs) (Reporting by Silke Koltrowitz; Editing by Elaine Hardcastle)