New York’s AG Scores as Credit Suisse Faces $10 Billion Mortgage Fraud Suit

Reclaim Our Republic

Eric Schneiderman, Attorney General of New York
ny ag Eric Schnederman
Dec 26, 2014 By Linda Sandler and Christie Smythe


Credit Suisse Group AG (CSGN) was ordered to face a $10 billion lawsuit by New York’s attorney general accusing the Swiss bank of fraud in the sales of mortgage-backed securities before the 2008 financial crisis.

A New York State Supreme Court justice rejected the bank’s request to dismiss the case, a move that gives leverage to Attorney General Eric Schneiderman to demand internal bank documents and force a settlement. New York demonstrated the bank may have engaged in misconduct, Justice Marcy Friedman said in a Dec. 24 decision, allowing the suit to head toward trial.

In addition to forcing Zurich-based Credit Suisse to defend itself or settle, the ruling may strengthen Schneiderman’s hand in punishing other banks for bad behavior tied to the recession.

Elizabeth DeBold, a spokeswoman for Schneiderman, said the lawsuit is…

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