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New York sues Credit Suisse over mortgage securities

Nov 21 2012 Thomson Reuters reporting team

New York Attorney General Eric Schneiderman sued Credit Suisse Group AG on Tuesday and accused it of deceiving investors in mortgage-backed securities, an industry practice that an official inquiry has called a major contributor to the financial crisis. The suit in New York state court is the latest action involving efforts by a state-federal task mortgage-fraud task force, co-chaired by Schneiderman and created by President Barack Obama earlier this year to investigate misconduct contributing to the financial crisis. The suit "represents an important action in the ongoing effort to hold financial wrongdoers accountable and in deterring future wrongdoing," Phil Angelides, who chaired the Financial Crisis Inquiry Commission established by Congress in 2009, said in a statement. Credit Suisse, Switzerland's second-largest bank, misrepresented the quality of loans underlying residential mortgage-backed securities it sponsored and underwrote in 2006 and 2007, leading to $11.2 billion

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