NCUA Sues Credit Suisse Over MBS Sold to Credit Unions

Federal regulators are targeting another financial firm in connection with its mortgage activities before the housing crisis.

The National Credit Union Administration sued Credit Suisse Group (CS) on Thursday, charging the Zurich-based company with misleading three corporate credit unions about the riskiness of mortgages that backed securities Credit Suisse bundled and sold to them. The three credit unions, which failed in 2010, sustained heavy losses from the transactions, the lawsuit says.

Separately, the U.S. Justice Department and the New York attorney general are probing the company’s handling of mortgage-backed securities, Reuters reported Thursday.

Read on.

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