MBIA To Settle Mortgage Litigation With Credit Suisse

(RTTNews) - MBIA Inc. (MBI) said that its subsidiary, MBIA Insurance Corp., has entered into an agreement to settle the litigation it filed in 2009 against Credit Suisse Securities (USA) LLC and certain affiliated entities over residential mortgage-backed securities.

The settlement followed a post-trial decision by the Court awarding MBIA Corp. about $604 million in damages.

As per the settlement, Credit Suisse has paid MBIA Corp. $600 million. Following the agreement to settle the case, the Court dismissed the action, MBIA said.

Last month, Credit Suisse said it expects to post a fourth-quarter loss after the Swiss bank set aside an extra $850 million for litigation linked to residential mortgage-backed securities stretching back to the financial crisis.