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Credit Suisse Agrees $5.3 Billion U.S. Mortgage Settlement

Credit Suisse will pay a $2.48 billion penalty to settle claims it misled investors in residential mortgage-backed securities it sold in the run-up to the 2008 financial crisis and will also provide $2.8 billion in consumer relief over five years.

"Credit Suisse will take a pre-tax charge of approximately $2 billion in addition to its existing reserves against these matters. This will be taken in our 4Q 2016 financial results," it added.

The final deal is in line with the $5 billion-$7 billion the U.S. Department of Justice (DOJ) had asked Credit Suisse to pay earlier in negotiations, as reported by Reuters on Monday.

The deal highlights the Justice Department's efforts to hold European banks accountable for shoddy securities that contributed to the U.S. housing market collapse.

Credit Suisse had paid a $2.8 billion fine in 2014 for helping wealthy Americans evade tax.

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