ALBANY, N.Y. (AP) -- New York is suing Credit Suisse (NYSE: CS ) and affiliates, claiming they misled investors about the care taken in evaluating their residential mortgage-backed securities.
The suit filed Tuesday in Manhattan under New York's Martin Act alleges Credit Suisse deceived investors before the 2008 market collapse.
Attorney General Eric Schneiderman says the securities sponsored and underwritten by Credit Suisse in 2006 and 2007 have lost about $11.2 billion.
Zurich-based Credit Suisse declined immediate comment.
Schneiderman is co-chair of a task force established by President Barack Obama to investigate misconduct in the pooling and sales of those securities.
Last month, he filed a similar lawsuit against JPMorgan Chase (NYSE: JPM ) , alleging fraud by Bear Stearns before its 2008 collapse and subsequent sale to the New York bank.
RSS Headlines
Fool UK
Comments from our Foolish Readers
Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the
Report this Comment icon found on every comment.
Be the first one to comment on this article.