Credit Suisse Group AG (CS - Free Report) is finally set to pay $79.5 million to settle all lawsuits filed against it by MassMutual, Massachusetts Mutual Life Insurance Company, relating to the sale of mortgage-backed securities before the financial crisis.
The Swiss banking giant said, “The agreement with MassMutual settles claims pending in the United States District Court for the District of Massachusetts related to the sale of 19 residential mortgage-backed securities certificates in 2006 and 2007,” adding, “The agreement resolves all claims in the two pending securities lawsuits filed by MassMutual against Credit Suisse.”
The above mentioned pre-tax charge will get reflected in the company’s third-quarter 2017 financial results, which is expected to be issued on Nov 2, 2017. This amount is in addition to the already-existing legal reserve created by the company and set aside for this case.
This is not the company’s first settlement against claims over its Residential Mortgage-Backed Securities business. Earlier in January, the lender agreed to pay $5.3 billion to settle claims with the U.S. Department of Justice.
With this cordial settlement, the lender will be able to finally put an end to the outstanding legal matter. This will also help the company focus more on wealth management.
Shares of the company have gained 7.7% so far this year, underperforming the 17.5% growth for the industry it belongs to.
Currently Credit Suisse carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks from the same space are The Toronto-Dominion Bank (TD - Free Report) , Bank of Montreal (BMO - Free Report) and The Bank of Nova Scotia (BNS - Free Report) .
Toronto-Dominion Bank witnessed an upward earnings estimate revision of 13.2% for the current fiscal year over the past 60 days. Its share price has increased 27.6% in a year’s time. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bank of Montreal’s Zacks Consensus Estimate for the current fiscal year has been revised 8.3% upward in the last 60 days. Its shares have gained 16.9% in the past 12 months. It currently carries a Zacks Rank #2.
Bank of Nova Scotia also carries a Zacks Rank #2. It has witnessed an upward earnings estimate revision of 8.3% for the current fiscal year over the past 60 days. Its shares price has increased 19.9% in a year’s time.
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