Calling it one more bait-and-switch operator, the NCUA said itfiled suit on Thursday against Credit Suisse Securities, chargingthat the Swiss bank subsidiary misrepresented the $715 billion inmortgage-backed securities it sold to three corporates, causingtheir collapse.
The suit in federal court in Kansas City, Kan., is the latestfiled by the agency against securities firms and alleges thatCredit Suisse violated state and federal securities in underwritingand sale of the securities to U.S. Central, WesCorp and SouthwestCorporate.
Similar actions already have been filed against J.P. MorganSecurities, RBS Securities, Goldman Sachs, Wachovia, UBS Securities and Barclay's. More than $170 million in claims have been settledwith Citigroup, Deutsche Bank Securities and HSBC, the first suchsettlements by a federal regulator for depository institutions, theNCUA said.
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