Credit Suisse Group AG was sued by New Jersey over claims the bank misrepresented the risk to investors in more than $10 billion in residential mortgage-backed securities, Bloomberg News reported yesterday. The state claims Credit Suisse Securities LLC and two affiliates misled investors about defects in securities issued in 2006 and 2007. The bank didn’t disclose that loans failed to meet underwriting standards and originators had “poor track records characterized by alarming levels of defaults and delinquencies,” New Jersey claimed. Credit Suisse, the second-biggest Swiss bank, faces a similar lawsuit from New York Attorney General Eric Schneiderman, who claimed last year that the bank misled investors about its review of mortgages underlying securities. The Zurich-based bank has asked a judge to dismiss the case.
