Attorney General Eric Schneiderman filed a Martin Act-backed complaint against Credi Suisse Securities LLC, alleging the company misled investors in order to sell residential mortgage-backed securities, contributed to a $11.2 billion loss.

“This lawsuit against Credit Suisse marks another significant step in our efforts to hold financial institutions accountable for the misconduct that led to the worst financial crisis in nearly a century,” Schneiderman said in a statement. “Our investigations and legal actions demonstrate that there must be one set of rules for all – no matter how big or powerful the institution may be – and that those rules will be enforced vigorously. We need real accountability for the illegal and deceptive conduct in the creation of the housing bubble in order to bring justice for New York’s homeowners and investors.”

Earlier on a conference call with reporters, Schneiderman said the case was similar in its scope to the one his office filed against JP Morgan earlier this year, which charged that the company knowingly misled investors and misrepresented the benefits of their financial products.

In the Credit Suisse case, Schneiderman’s office says the company was focused on selling a high volume of mortgage home loans. While publicly claiming the products were safe investments, senior traders called the investments “garbage” and “low quality.”

Schneiderman’s complaint alleges that in order to achieve high volume, Credit Suisse developed an “incentives” program that rewarded orginators to continually delivering “crap,” according to emails obtain by investigators.

By 2012, the total losses incurred by the residential mortgage-backed securities that Credit Suisse had sponsored totaled more than $11.2 billion, roughly 12 percent of the company’s $93.8 billion balances.

The suit is part of the overall effort from the Obama administration and state attorneys general to investigate misconduct from major mortgage-holding institutions, financial services companies and lending banks in the lead up to the Wall Street meltdown of 2008. Schneiderman is the chair of the investigative panel.

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