Credit Suisse faces toxic bonds inquiry

Credit Suisse has become the second investment bank in four days to face a United States crackdown over toxic mortgage-backed products sold before the credit crunch struck.

The inquiry by the Department of Justice and New York attorney general Eric Schneiderman comes after JPMorgan faced a lawsuit over bonds sold by Bear Stearns, which JPMorgan saved from collapse in 2008. JPMorgan has said it will contest the claims.

Credit Suisse refused to comment.