This settlement will, if fully agreed, release Switzerland’s second-largest bank from potential civil claims by the DOJ related to its securitisation, underwriting and issuance of RMBS. Under the terms of the settlement, Credit Suisse would pay to the DOJ a civil monetary penalty of $2.48 billion. In addition, Credit Suisse would provide consumer relief totalling $2.8 billion over the course of five years following the settlement.

This matter is subject to the negotiation of final documentation and approval by the Credit Suisse board of directors.

Credit Suisse will take a pre-tax charge of approximately $2 billion in addition to its existing reserves against these matters. This will be taken in the Zurich-listed bank’s fourth-quarter financial results.