Credit Suisse finalizes $5.3 billion mortgage settlement with U.S.

As part of the settlement, announced by the U.S. Department of Justice on Wednesday, the Zurich-based bank acknowledged that home loans it pooled into the securities did not meet underwriting guidelines, with some described by employees as "complete crap" and "[u]tter complete garbage."

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Credit Suisse will pay a $2.48 billion cash penalty and provide $2.8 billion in consumer relief, including loan forgiveness and financing for affordable housing, the Justice Department said in the statement.''

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The settlement clears the biggest cloud over Credit Suisse. However, the total amount in U.S. penalties could climb as the bank is still defending itself against lawsuits by the New York and New Jersey attorneys general over similar claims involving billions of dollars in investor losses.

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Major U.S. banks, including JPMorgan Chase & Co and Bank of America Corp (BAC.N), have paid a total of $46 billion to resolve similar conduct involving the quality of loans pooled and sold.. While the Credit Suisse settlement will likely be the last under the Obama administration, other banks under investigation include Royal Bank of Scotland, Wells Fargo & Co, UBS Group AG, and HSBC.