Credit Suisse, Merrill Fined $7.5M For Subprime Wrongs

Law360, New York (May 26, 2011, 12:22 PM EDT) -- The Financial Industry Regulatory Authority announced Thursday it had fined Credit Suisse Securities (USA) LLC and Merrill Lynch a combined $7.5 million for misrepresentation of delinquency data and inadequate supervision in issuing subprime residential mortgage-backed securities.

According to FINRA, Credit Suisse will pay $4.5 million and Merrill Lynch $3 million for both under- and over-reported delinquency rates for mortgages that were packaged into debt securities prior to the collapse of the housing market.

Credit Suisse violated Regulation AB of the Securities Act of 1933 in the...
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