Credit Suisse Group (NYSE: CS) will pay $120 million to settle charges similar to those against Bear Stearns. The director of the SEC’s enforcement division said:
In many ways, mortgage products such as RMBS were ground zero in the financial crisis. Misrepresentations in connection with the creation and sale of mortgage securities contributed greatly to the tremendous losses suffered by investors once the U.S. housing market collapsed.
The worst could be yet to come for Morgan though. The bank still faces similar put-back claims on $140 billion in mortgage-backed notes. And while it is not on the hook for the entire amount, several billion dollars.
The SEC announcement is available here.