| NEW YORK
NEW YORK Nov 19 The New York attorney-general
is preparing to file a civil lawsuit against Credit Suisse
for misleading investors who lost billions of dollars
on mortgage-backed securities, according to a source familiar
with the matter.
The lawsuit, which is expected to be filed on Wednesday,
will allege that Credit Suisse misrepresented the quality of
loans packaged in securities, according to the source.
Investors lost more than $11.2 billion, the source added.
Credit Suisse did not immediately respond to a request for
comment after business hours.
James Freedland, a spokesman for the Attorney-General Eric
Schneiderman, declined to comment.
Last month, Schneiderman filed a similar lawsuit against
JPMorgan Chase & Co over mortgage-backed securities
packaged and sold by Bear Stearns, the investment bank JPMorgan
bought for $10 a share in March 2008. That lawsuit claimed that
investors lost more than $22.5 billion on more than 100
Schneiderman's lawsuit was brought under the Martin Act, New
York's powerful securities fraud statute, which does not require
proof of intent to deceive.
It was the first action to come out of the working group
created by President Barack Obama to go after wrongdoing that
led to the financial crisis. Schneiderman is a co-chair of that