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Credit Suisse says new court order could result in $680 million RMBS judgment - Metro US

Credit Suisse says new court order could result in $680 million RMBS judgment

FILE PHOTO: Logo of Swiss bank Credit Suisse is seen Zurich

ZURICH (Reuters) – Credit Suisse on Tuesday said a judge presiding over a more than decade-long dispute regarding a U.S. residential mortgage backed security (RMBS) had asked the bank and another party to issue estimates of damages, which could result in a judgment against Credit Suisse of up to approximately $680 million.

“While Credit Suisse believes that it has strong grounds for appeal, it has already taken provisions totalling $300 million in prior periods in connection with this case, and would expect to increase its RMBS-related provisions as a consequence of this order,” the bank said. “We will provide an update on the impact on our 4Q20 results in due course.”

(Reporting by Brenna Hughes Neghaiwi; editing by Thomas Seythal)

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