DrSwiss bank Credit Suisse (CS) is shedding another legacy from the past. In the course of the settlement, CS pays the US insurer MBIA about $ 600 million. This was preceded by a subsequent judicial decision under which MBIA was entitled to compensation in a very similar amount. The dispute dates back to the financial crisis of 2008 and 2009. At that time, CS was one of those banks operating in the business of securities structured based on loans for the purchase of residential real estate.
This value was lost dramatically during the crisis. MBIA has insured the buyers of these papers against default. Originally, the insurance company requested $ 680 million in compensation. The bank has already made provisions for the payment due now. In early January, it announced that it would allocate an additional $ 850 million to litigation over old mortgage deals in the United States. This will have a similar negative impact on Credit Suisse results in 2020. The bank will present its figures for the past year on February 18th.
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