"Credit Suisse Group AG defrauded investors of more than $1 billion by misrepresenting the risks of its residential mortgage-backed securities," NJ Gov. Chris Christie's acting state Attorney General, John J. Hoffman, tells Bloomberg LP here. He called Credit Suisse "irresponsible and lazy" for lying about poor loan quality, leading up to the 2008 credit market freeze and ensuing recession. NJ's pension funds like other investors lost money in the resulting collapse. The bank has asked a New York judge to toss out the case.
"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." Read Hoffman's lawsuit here.
Is Pennsylvania Attorney General Kathleen Kane joining in the belated get-the-bankers bash, or will she imitate her elected predecessors in steering clear of targeting big Wall Street banks? No reply to my query this morning.