NY sues Credit Suisse over mortgage securities

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Associated Press

Posted on November 20, 2012 at 4:00 PM

Updated Tuesday, Nov 20 at 5:01 PM

ALBANY, N.Y. (AP) — New York is suing Credit Suisse Securities and affiliates, claiming they misled investors about the care taken in evaluating their residential mortgage-backed securities.

The suit filed Tuesday in Manhattan under New York's Martin Act alleges Credit Suisse deceived investors before the 2008 market collapse.

Attorney General Eric Schneiderman (SHNEYE'-dur-muhn) says the securities sponsored and underwritten by Credit Suisse in 2006 and 2007 have lost about $11.2 billion.

Zurich-based Credit Suisse says Schneiderman "recycles baseless claims" from private lawsuits.

Schneiderman is co-chair of a task force established by President Barack Obama to investigate misconduct in the pooling and sales of those securities.

Last month, he filed a similar lawsuit against JPMorgan Chase & Co., alleging fraud by Bear Stearns before its 2008 collapse and subsequent sale to the New York bank.

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