ZURICH, Sept 15 (Reuters) - Credit Suisse is taking a roughly $79.5 million hit to settle charges by Massachusetts Mutual Life Insurance about its residential mortgage-backed securities (RMBS) business, the Swiss bank said late on Thursday.
The new pre-tax charge will be taken in the Zurich-based bank’s third-quarter results and is in addition to its existing legal reserves set aside for the case.
“The agreement with MassMutual settles claims pending in the United States District Court for the District of Massachusetts related to the sale of 19 residential mortgage-backed securities certificates in 2006 and 2007,” Credit Suisse said in a statement.
“The agreement resolves all claims in the two pending securities lawsuits filed by MassMutual against Credit Suisse.”
It is Credit Suisse’s latest settlement regarding its RMBS business after it formally agreed in January to a $5.3 billion settlement with U.S. authorities over claims it misled investors about RMBS it sold in the run-up to the 2008 financial crisis.
Credit Suisse reports third-quarter earnings on Nov. 2.
Reporting by Joshua Franklin; Editing by Biju Dwarakanath