Now it's Credit Suisse's turn to sign off on its Department of Justice fine for $5.3bn

 
Hayley Kirton
Follow Hayley
Credit Suisse Charged With Helping US Clis
The penalty was agreed in principle late last year (Source: Getty)

Credit Suisse has finalised its agreement to settle for $5.3bn (£4.3bn) with the US Department of Justice (DoJ) for mis-selling mortgage-backed securities in the lead-up to the financial crisis.

The bank agreed to the settlement in principle last month, but the deal was effectively rubber-stamped today.

The Swiss bank's payment is divided between a $2.5bn cash penalty and $2.8bn in customer relief.

"Today's settlement underscores that the DoJ will hold accountable the institutions responsible for the financial crisis of 2008," said attorney general Loretta Lynch. "Credit Suisse made false and irresponsible representations about residential mortgage-backed securities, which resulted in the loss of billions of dollars of wealth and took a painful toll on the lives of ordinary Americans."

Late last night, Deutsche Bank had its own settlement for the same issue finalised for $7.2bn, much lower than the $14bn penalty which they were threatened with paying at one point.

Related articles