Swiss wealth manager Credit Suisse has agreed a final settlement with Massachusetts Mutual Life Insurance Company (MassMutual) over the sale of its legacy residential mortgage-backed securities (RMBS) before the financial crisis.
The settlement is associated with the sale of 19 such securities certificates in 2006 and 2007.
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“The agreement resolves all claims in the two pending securities lawsuits filed by MassMutual against Credit Suisse: MassMutual v. DLJ Mortgage Capital, Inc., et al. and MassMutual v. Credit Suisse First Boston Mortgage Securities Corp., et al,” the Swiss firm said in a statement.
The firm will take a pre-tax charge of around $79.5m in its third quarter results apart from its existing reserves set aside for the matter.
The latest settlement follows a $5.3bn settlement over RMBS sale that Credit Suisse agreed with the US Department of Justice (DOJ) in January 2017. At that time, the regulator alleged that investors suffered billions of dollars in losses from investing in RMBS issued and underwritten by the Swiss firm between 2005 and 2007, and called it as a factor contributing to the 2008 financial crisis.
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