An old mortgage dispute in the US from 2009 could take off.
Credit Suisse threatens further adversity in terms of legal cases. An open mortgage dispute in the US could cost the major bank a fine of up to 680 million dollars (568 million euros).
The case between the bank and the US company MBIA in New York dates back to 2009. The dispute concerns guarantees relating to a mortgage loan, a so-called Residential Mortgage Backed Security (RMBS).
Last night, the chief judge asked both parties to submit damage estimates, said Credit Suisse. A verdict of up to $ 680 million could now be reached.
Even if the bank believes that there are strong reasons for an appeal: In connection with this case, provisions totaling $ 300 million have been booked in the past.
The RMBS-related provisions are now expected to be increased even further. In due course they will inform about the effects on the result in the fourth quarter.
