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Credit Suisse sued for predatory lending

BOISE, Idaho, Jan. 5 (UPI) -- A lawsuit filed in Idaho alleges Credit Suisse engaged in predatory lending so loans would fail, so it could take over the properties, court papers show.

The lawsuit involves loans made to purchase property at four luxury resorts, including Yellowstone Club in Montana, Lake Las Vegas in Nevada, Tamarack in Idaho and Ginn sur Mer in the Bahamas, The Times of London Online reported Tuesday.

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The suit seeking class-action status for 3,000 borrowers calls for $24 billion in restitution. It also names commercial real estate company Cushman & Wakefield as a defendant.

The complaint calls the lending practices a "financial heist," and claims Credit Suisse "knew at the time the lending advice and authorizations were given that its scheme and tactics would cause the developers and the resorts financial ruin, resulting in the ultimate takeover by Credit Suisse."

In a related case -- Yellowstone Club's bankruptcy case -- U.S. Judge Ralph Kirscher wrote that the bank's "predatory lending practices … shocks the conscience of this court."

Both Credit Suisse and Cushman & Wakefield said they would defend themselves and denied the allegations.

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