Compliance Corner: SunTrust Banks, Credit Suisse

Editorial Staff

18 September 2017

SunTrust Banks
A US regulator has charged the investment services arm of (MassMutual), related to its legacy residential mortgage-backed securities (RMBS) business, the firm said in a statement.

The agreement with MassMutual settles claims pending in the United States District Court for the District of Massachusetts related to the sale of 19 residential mortgage-backed securities certificates in 2006 and 2007. The agreement resolves all claims in the two pending securities lawsuits filed by MassMutual against Credit Suisse.

Credit Suisse has said that it "is pleased to have reached an amicable settlement with MassMutual that allows the bank to put this legacy matter behind it."

The Swiss lending giant will take a pre-tax charge of approximately $79.5 million in addition to its existing reserves against the matter. This charge will be taken in its Q3 2017 financial results, which will be announced on November 2.