"Credit Suisse Group was sued by a Florida insurer that says it lost money on investment-grade bonds backed by subprime mortgages sold by the bank.
The suit, filed in Florida by Bankers Life Insurance Co., is “one of three to five in the pipeline'' involving securitizations by Credit Suisse, Switzerland's second-largest bank, said Dale Ledbetter of Ledbetter & Associates P.A., one of two law firms representing the Bankers Financial Corp. unit.
“We suspect that once people understand what occurred here, there's going to be a lot more,'' Ledbetter said. A total of $302.6 million of bonds were originally issued in the deal. "
Sewage flows downhill. This bank isn’t going to just roll over and pay up; they’re going to go back into their pipeline after the fraudulent loan applications and the fraudulent appraisals that enabled them. Everyone in the process who has dirty hands will be subject to scrutiny.
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