Credit Suisse: $80 mln agreement will be taken in Q3 results

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.

Credit Suisse has settled a number of mortgage-related claims in the past year as Chief Executive Officer Tidjane Thiam seeks to put an end to outstanding legal issues and refocus the firm on wealth management. The lender completed a $5.3 billion agreement to settle with the U.S. Department of Justice in January and reached a $400 million accord with the National Credit Union Administration in May.

“Credit Suisse is pleased to have reached an amicable settlement with MassMutual that allows the bank to put this legacy matter behind it,” the firm said in a statement.
Credit Suisse reports third-quarter earnings on November 2.