Credit Suisse Faces $10 Billion NY Mortgage-Fraud Lawsuit

Credit Suisse, Switzerland’s second-largest bank, now faces a $10 billion lawsuit filed by New York’s attorney general for alleged fraud in selling residential mortgage-backed securities before the 2008-financial crisis. The latest developments could strengthen the state attorney general’s hand in punishing other banks for bad behavior tied to the recession. Claims against Credit Suisse New York sued Credit Suisse in November 2012, claiming the bank misrepresented the risks of investing in mortgage-backed securities. Last year, the bank argued that New York missed a three-year deadline for suing, while the state countered that it had six years to file its complaint. New…