In the motion the insurance giant MBIA just filed against Credit Suisse (dated April 29, filed today), there’s an interesting conversation between a handful of Credit Suisse bankers.
The subject of the emails: Why did we give a $1 million loan to a stripper?
The conversation begins on April 10, 2007, when Credit Suisse’s Jeffrey Martin realises that the stripper’s first payment, due 2/1/07, hasn’t been paid.
In the same motion, MBIA says that “Credit Suisse is now the subject of an investigation by the SEC, which issued a subpoena this week seeking the same types of documents as MBIA seeks with this motion.” (The stripper loan might not be connected to the SEC’s subpoena, however included in the email chain is a message where someone writes, “someone should go to jail for this.”)
But first – the fun stuff.
The following are a number of Credit Suisse emails discussing a stated loan income to an adult dancer who claimed she made $12,000/month, plus an email acknowledging that someone should go to jail for mortgage fraud.
You should also know that according to Bloomberg, the motion pertains to this:
MBIA alleges in its case that Zurich-based Credit Suisse failed to repurchase soured mortgages out of a 2007 securitization as contractually required.
And that Credit Suisse wouldn’t comment on whether or not they received a subpoena from the SEC.
Credit Suisse: we have a $1 million loan that is still due for its first payment! How did that happen?
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