Credit Suisse in $5.28B RMBS Settlement
The U.S. Department of Justice has announced a $5.28 billion settlement with Credit Suisse that will resolve charges related to the packaging, securitization, issuance, marketing and sale of residential mortgage-backed securities (RMBS) between 2005 and 2007.
In the settlement, Credit Suisse acknowledged making false and misleading representations to prospective investors about the characteristics of the mortgage loans it securitized. Employees for the Swiss-based financial institutions were aware of these problems, referring to the loans in question as “bad loans,” “complete crap,” and “utter complete garbage.”
As part of the settlement, Credit Suisse to pay $2.48 billion as a civil penalty under the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), while $2.8 billion will be directed to relief efforts for underwater homeowners, distressed borrowers and affected communities, in the form of loan forgiveness and financing for affordable housing.
“Resolutions like the one announced today confirm that the financial institutions that engaged in conduct that jeopardized the nation’s fiscal security will be held accountable,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This is another step in the Department’s continuing effort to redress behavior that contributed to the Great Recession.”
FMJ Job Listings
- Chief Financial Officer - True North Federal Credit Union - Juneau, AK
- Residential Mortgage Loan Post Closer Coordinator Kansas Farm Bureau | Manhattan, KS - Undisclosed - MANHATTAN, KS
- Retail Personal Banker II - Fifth Third Bank - NAPLES, FL
- Transaction Coordinator (Contract to Close) - Guild Mortgage Company - Plano,
- Loan Processor III - Guild Mortgage Company - Hudson Oaks,
- Transaction Coordinator (Lead to Contract) - Guild Mortgage Company - San Antonio,