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Update: Legacy RMBS case

As has been previously disclosed, Credit Suisse and MBIA have been in a legal dispute in New York since 2009 in respect of warranties regarding a US residential mortgage backed security (RMBS) issued in 2007.

Last night, the judge presiding over this legacy case issued an order requiring both parties to submit estimates of damages in respect of these mortgages which could result in a judgment against Credit Suisse of up to approximately $680 million.

While Credit Suisse believes that it has strong grounds for appeal, it has already taken provisions totaling $300 million in prior periods in connection with this case, and would expect to increase its RMBS-related provisions as a consequence of this order.

We will provide an update on the impact on our 4Q20 results in due course.