Credit Suisse  said on Friday that it had reached an $885 million settlement to resolve claims that it sold questionable loans to the mortgage giants Fannie Mae and Freddie Mac in the lead-up to the financial crisis.
The Swiss bank is the latest Wall Street bank to settle with the United States Federal Housing Finance Agency, which controls Fannie and Freddie.  Credit Suisse said in a securities fling that it would take a charge of 275 million Swiss francs, or about  $311.5 million, against its 2013 results because of the settlement.
The United States government pumped more than $150 billion into Fannie and Freddie during the financial crisis, and Friday’s settlement is part of a broader push by the F.H.F.A. to crack down on the lending practices that fueled the need for a bailout. In 2011, the agency sued more than a dozen banks over nearly $200 billion in subprime mortgage-backed securities.
Credit Suisse’s agreement with the F.H.F.A. relates to $16.6 billion in loans the firm sold to Fannie and Freddie between 2005 and 2007, according to the filing.
A number of banks have settled mortgage litigation with the government since then. Morgan Stanley agreed to pay $1.4 billion last month, while JPMorgan Chas agreed to pay $4 billion last year, the largest settlement thus far.
