Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Swiss Exchange  >  Credit Suisse Group AG    CSGN   CH0012138530

Delayed Quote. Delayed  - 08/31 05:31:44 pm
12.81 CHF   +2.23%
02:31a TELSTRA : Credit Suisse rates TLS as Underperform
02:31a CREDIT SUISSE : rates ABC as Neutral
08/31 KPN announces Eurobond and Tender Offer
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Exclusive: Credit Suisse faces U.S. probe into mortgage products

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/22/2013 | 09:27pm CEST

The U.S. Attorney's Office in New Jersey is investigating Credit Suisse AG over mortgage-backed securities packaged and sold by the bank, according to people familiar with the matter.

U.S. Attorney's Offices in other districts are focusing on other banks in related investigations, said the people, who were not authorized to speak publicly. It was unclear how many U.S. Attorneys were involved.

The investigations show that authorities are still trying to build cases over the alleged misconduct by banks that led to the 2008 financial crisis.

The New Jersey probe came out of a working group created by President Barack Obama in January 2012, one of the people said.

The task force, called the Residential Mortgage-Backed Securities (RMBS) Working Group, was supposed to coordinate a series of federal and state investigations into shoddy loans that were packaged and sold to investors. Those securities spread risk throughout global markets and were a major contributing factor to the financial crisis.

The Justice Department said early last year that it had sent civil subpoenas to 11 financial institutions as part of its investigation of the RMBS market.

U.S. Attorney Paul Fishman of New Jersey is examining how Credit Suisse handled the mortgage-securitization process, step by step, according to one of the people.

Matthew Reilly, a spokesman for Fishman, declined to comment.

Adora Andy, a spokeswoman for the U.S. Department of Justice, did not immediately return a call for comment.

Jack Grone, a spokesman for Zurich-based Credit Suisse, Switzerland's second largest-bank, also declined to comment.

Credit Suisse has been the target of other U.S. probes over mortgage-backed securities. In November, the bank agreed to a $120-million settlement with the U.S. Securities and Exchange Commission over civil charges stemming from the bank's sale of risky mortgage bonds to investors before the crisis.

The bank settled the SEC case without admitting wrongdoing.

Separately, New York Attorney General Eric Schneiderman filed a civil lawsuit against Credit Suisse in November. The complaint accused Credit Suisse of misleading investors who lost $11.2 billion in mortgage-backed securities sponsored by the bank.

Schneiderman is a co-chair of the RMBS Working Group formed by Obama.

Schneiderman also filed a lawsuit against JPMorgan Chase & Co in October. That case is over mortgage securities sold by Bear Stearns, which JPMorgan acquired in a fire sale in 2008. The JPMorgan case was the first lawsuit to emerge from the working group.

The Justice Department in Washington is also investigating JPMorgan over allegations that Bear Stearns provided misleading information about its mortgage products in the lead-up to the financial crisis, as Reuters reported Wednesday.

Earlier this month, in one of its most ambitious cases tied to the crisis, the Justice Department filed a $5 billion lawsuit against McGraw Hill's Standard & Poor's unit. Filed in Los Angeles, the lawsuit claims the credit rating agency schemed to defraud investors in mortgage-backed securities that collapsed in the financial crisis. Standard & Poor's has said the lawsuit is "meritless."

During his 2012 State of the Union address, Obama said he created the group investigating the packaging of risky mortgages to "hold accountable those who broke the law" and to "help turn the page on an era of recklessness."

(Editing by Karey Wutkowski and Bernadette Baum)

By Karen Freifeld

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CREDIT SUISSE GROUP AG
02:31a TELSTRA : Credit Suisse rates TLS as Underperform
02:31a CREDIT SUISSE : rates ABC as Neutral
08/31 KPN announces Eurobond and Tender Offer
08/31 CREDIT SUISSE : rates FXL as Outperform
08/31 CREDIT SUISSE : rates ISU as Outperform
08/31 CREDIT SUISSE : rates RHC as Neutral
08/31 CREDIT SUISSE : rates SFR as Underperform
08/31 CREDIT SUISSE : rates CAJ as Neutral
08/30 CREDIT SUISSE : rates EVN as Reinstate coverage with Outperform
08/30 CREDIT SUISSE : rates NHC as Neutral
More news
Sector news : Diversified Investment Services
08/31DJGoogle Takes on Uber With New Ride-Share Service
08/26DJCITIC : First-Half Net Profit Down 46% on Year
08/08DJMACQUARIE : China Exports Slide on Weak Demand
08/01DJMobile, Cloud Fuel Tech Profits -- WSJ
07/27DJMACQUARIE : says 1Q Contribution from Operating Groups up on Prior Quarter
More sector news : Diversified Investment Services
News from SeekingAlpha
08/23 ZOMBIE BANKS : Low Price/Book Ratios Characterize The Walking Dead
08/10 ELON MUSK : Will He Or Won't He?
08/10 ICE AND CME : Servants Or Parasites?
08/09 Warren Buffett Bails On WMDs, So Where Are They Buried Now?
08/09 Where Are Warren Buffett's Financial WMDs? (Podcast)
Advertisement
Financials ( CHF)
Sales 2016 20 403 M
EBIT 2016 162 M
Net income 2016 -394 M
Debt 2016 -
Yield 2016 4,82%
P/E ratio 2016 -
P/E ratio 2017 16,81
Capi. / Sales 2016 1,31x
Capi. / Sales 2017 1,24x
Capitalization 26 772 M
More Financials
Chart CREDIT SUISSE GROUP AG
Duration : Period :
Credit Suisse Group AG Technical Analysis Chart | CSGN | CH0012138530 | 4-Traders
Full-screen chart
Technical analysis trends CREDIT SUISSE GRO...
Short TermMid-TermLong Term
TrendsBullishNeutralBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 31
Average target price 13,8  CHF
Spread / Average Target 7,8%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Tidjane Thiam Chief Executive Officer
Urs Rohner Chairman
Pierre-Olivier Marie Bouée Chief Operating Officer
David R. Mathers Chief Financial Officer
Noreen Doyle Vice Chairman
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
CREDIT SUISSE GROUP AG-42.23%26 624
CITIC LTD-8.67%46 729
MACQUARIE GROUP LTD-2.72%20 595
CHINA HUARONG ASSET MA..1.32%15 466
NATIXIS-23.98%13 541
INVESTEC PLC-3.15%5 963
More Results