WEALTH JANUARY 7, 2019 / 7:06 AM / UPDATED 27 MINUTES AGO

Credit Suisse settles New York state RMBS lawsuit

ZURICH (Reuters) - Credit Suisse has settled a 2012 New York state lawsuit alleging misconduct over residential mortgage-backed securities (RMBS), with a source familiar with the deal saying the bank would pay much less than prosecutors had originally sought.

The settlement, which was made last week, takes Credit Suisse a step closer to wrapping up an expensive chapter linked to the financial crisis a decade ago, although some civil claims remain unresolved.

“Credit Suisse is pleased to have settled this legacy case,” the bank said in a statement, confirming the deal, though not what it is paying in the pact with the New York State Attorney General’s office.

The source told Reuters on Monday the latest figure the Swiss bank must pay related to U.S. mortgage-backed securities is in the low, two-digit millions of dollars, confirming a weekend report in Swiss newspaper Ostschweiz am Sonntag.

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