Corporate Press Release

Press Release

Credit Suisse reaches settlement in principle with U.S. Department of Justice regarding legacy Residential Mortgage-Backed Securities matter

Credit Suisse announced today that it has reached a settlement in principle with the U.S. Department of Justice (DOJ) related to its legacy Residential Mortgage-Backed Securities (RMBS) business – a business conducted through 2007.

This settlement would release Credit Suisse from potential civil claims by the DOJ related to its securitization, underwriting and issuance of RMBS. Under the terms of the settlement, Credit Suisse would pay to the DOJ a civil monetary penalty of USD 2.48 billion. In addition, Credit Suisse would provide consumer relief totaling USD 2.8 billion over the course of five years post settlement.

This settlement 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 USD 2 billion in addition to its existing reserves against these matters. This will be taken in our 4Q 2016 financial results.