Credit Suisse: MBIA makes subprime agreement official
(CercleFinance.com) - On Friday The US bond insurance company MBIA formalised the terms of an agreement with Credit Suisse on residential mortgage backed securities (RMBS) issued in 2007, shortly before the subprime crisis erupted.
The settlement follows a court decision awarding MBIA some 604 million dollars in damages, of which Credit Suisse has already paid almost all (600 million dollars), MBIA said in a statement.
The agreement ends the civil lawsuit that Credit Suisse and MBIA have been in at a New York court since 2009 over the guarantees for these securitized real estate loans, whose value fell during the financial crisis of 2008.
Credit Suisse announced last month that it had set aside 850 million dollars in provisions for the MBIA case and other RMBS cases.
The Credit Suisse share is currently down about 0.3% on the Zurich stock exchange.
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