NY sues Credit Suisse over mortgage securities

Updated at: 11/20/2012 2:35 PM
By:

(AP) ALBANY, N.Y. - 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.

(Copyright 2012 by The Associated Press. All Rights Reserved.)