Hoffman’s office sued Credit Suisse over claims it misled investors about the risk involved in more than $10 billion in securities issued in 2006 and 2007, before the housing market collapsed. The lawsuit follows one by New York Attorney General Eric Schneiderman, who claimed last year that the bank misled investors about its review of mortgages underlying securities.
“Credit Suisse was greedy and irresponsible,” Hoffman said yesterday. “The losses are in excess of $1 billion and likely in the billions.”
Credit Suisse, the second-biggest Swiss bank, faces other state and federal investigations that could lead to a consolidation of claims filed by governments, Hoffman said. The Zurich-based bank has asked a judge to dismiss the New York case, and criticized the New Jersey complaint announced yesterday.