NY Attorney General Eric Schneiderman is taking on Credit Suisse over allegedly deceiving investors over mortgage-backed securities. The Swiss bank tried to have the case dismissed, but unsuccessfully, as Schneiderman said it deceived clients over the quality of mortgage backed securities issued in 2006 and 2007. Investors, according to Reuters, suffered $11.2 billion in losses, and the lawsuit is backed by a federal state group that has the blessing of President Barack Obama.
A spokesperson for Credit Suisse said the bank will continue to defend itself against the allegations. Credit Suisse is not the only bank to be implicated. Bank of America, JPMorgan and Citigroup have paid fines to the U.S. government for similar charges.
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