FHFA, Credit Suisse reach $885M settlement
March 25, 2014 – The Federal Housing Finance Agency, as conservator of Fannie Mae and Freddie Mac, reached an $885 million settlement with Credit Suisse to resolve all claims brought by the regulator in connection with the firm's sale of securities to the entities.
This resolves claims in FHFA’s suit directly against Credit Suisse and against the firm as a defendant in another suit against Ally Financcl Inc.
FHFA says that under the agreement, Credit Suisse will pay about $234 million to Fannie Mae and $651 million to Freddie Mac; certain claims related to the securities involved will be released. FHFA says this is the ninth settlement it has announced related to 18 suits it filed in 2011 over private-label mortgage securities.
FHFA-Credit Suisse settlement