ZURICH, March 21 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
($1 = 0.8838 Swiss Francs)
(Reporting by Silke Koltrowitz; Editing by Elaine Hardcastle)