FLASH! Credit Suisse Sued Over Subprime Losses!

Posted 2007-04-27 19:17
by Karl Denninger

Here we go!

I predicted this.... that the insurance companies and pension funds would not take it up the tail willingly, and would do their damndest to come back after the securitizers..... and you know where it goes up the pipeline from there!

Here come the sewage backups!

"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. "

Hate to say it, but "I told 'ya so."

This is just getting started.

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