Credit Suisse Says Lending Lawsuit Without Merit

Defense attorneys want a federal judge to throw out a $24 billion predatory lending lawsuit filed against Credit Suisse Group by investors in broke resorts in the West and the Bahamas, The Associated Press reported. The investors contend Credit Suisse set up a branch in the Cayman Islands to skirt U.S. rules and appraised the resorts at inflated prices as part of a scheme to later foreclose on the properties. In court documents filed Monday, attorneys for Credit Suisse said the legal action was based on absurd claims by people who never borrowed money from the bank. In the complaint, investors detailed what they called a loan-to-own scheme, contending that Credit Suisse planned to make money on both ends of the resort lending deals - first by collecting millions of dollars in loan fees and later by foreclosing and flipping the resorts. Read more.