ECONOMY

Credit Suisse to pay $5.3B over mortgage-backed securities

Credit Suisse has agreed to pay $5.3 billion to settle claims that it misled investors about the quality of mortgage-backed securities that it sold in the lead-up to the 2008 financial crisis.

The U.S. Department of Justice says Credit Suisse admitted that it knew the mortgages it packaged and then sold as securities did not meet underwriting standards.

Credit Suisse will pay a $2.5 billion fine plus $2.8 billion for relief to struggling homeowners, borrowers or communities.

In a statement, the Swiss bank says it is pleased to put the matter behind it.