CS - MBIA stock rises after Credit Suisse pays $600M to settle mortgage crisis suit

MBIA (MBI) gains 6.3% after Credit Suisse ([[CS]] +0.5%) paid it $600M to settle litigation alleging that the Swiss bank misrepresented the quality of loans in RMBS that MBIA insured in 2007.The settlement follows a post-trial decision by a New York state judge awarding MBIA ~$604M in damages; at the time, CS said it would appeal.The payment helps CS clean up legal disputes that have been dragging on for years after the 2008 financial crisis. MBIA originally filed its lawsuit in 2009.Assured Guaranty settled with Credit Suisse in 2014. In 2017, the bank agreed to pay $5.3B to settle crisis-era mortgage charges by the U.S. Justice Department.

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MBIA stock rises after Credit Suisse pays $600M to settle mortgage crisis suit